NEW YORK, Oct. 23, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into lululemon athletica inc. (NASDAQ:LULU) for potential securities fraud after significant stock drops.
If you invested in Lululemon, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/lululemon-class-action-lawsuit.
Key Details of the Lululemon ($LULU) Class Action Investigation:
Investigation Overview: Securities fraud investigation relating to Lululemon’s misrepresentations about the strength of its growth and overall business healthLargest Stock Drop: September 4, 2026 – 17.4% Stock DropAction: Contact BFA Law to discuss your rights Why is Lululemon Being Investigated for Securities Fraud?
Lululemon is being investigated for securities fraud following significant stock drops. The decline in Lululemon’s stock price caused significant losses to investors.
Lululemon is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. Lululemon’s apparel includes pants, shorts, tops, and jackets designed for athletic activities, as well as fitness-oriented apparel and accessories.
BFA is investigating whether Lululemon misled investors about the strength of its growth and overall business health.
Why did Lululemon’s Stock Drop?
On April 22, 2026, after market close, Lululemon announced that Heidi O’Neill would be appointed as CEO effective September 8, 2026. Analysts expressed skepticism that O’Neill was well-suited for this role given her background.
On this news, the price of Lululemon stock declined by $21.79 per share, or 13.3%, from a closing price of $163.45 per share on April 22, 2026, to a closing price of $141.66 per share on April 23, 2026.
Then, on June 4, 2026, after market close, Lululemon disclosed that gross margins were down 4% year-over-year. Further, sales trends slowed at the end of the quarter due to both negative media commentary about Lululemon’s products and underwhelming results from new product launches.
On this news, the price of Lululemon stock declined by $10.96 per share, or 8.6%, from a closing price of $124.92 per share on June 4, 2026 to a closing price of $114.23 per share on June 5, 2026.
Then, on September 3, 2026, after market close, Lululemon announced a year-over-year revenue decline of 4.3%, including a 10% decline in same-store sales a 20% decline in Lululemon’s core products—leggings and women’s tops—during the quarter. Management lowered FY26 revenue, operating margins, EPS guidance, and issued fiscal 3Q26 EPS guidance which was 60% below analysts’ expectations.
On this news, the price of Lululemon stock declined by $21.16 per share, or 17.4%, from a closing price of $121.77 per share on September 3, 2026 to a closing price of $100.61 per share on September 4, 2026.
Click here for more information: https://www.bfalaw.com/cases/lululemon-class-action-lawsuit.
What Can You Do?
If you invested in Lululemon, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Lululemon očekává ve svém výhledu pokles tržeb o 5–7 % poté, co srovnatelné tržby v Severní a Jižní Americe ve čtvrtletí klesly o 12 %; akcie letos ztratily 54 %.
A stock does not lose half its value in 10 months because of one bad quarter. Lululemon Athletica (LULU -2.87%) has fallen 54% in 2026 and now trades for about 8.5 times trailing earnings, a multiple the market usually reserves for businesses it believes are shrinking for good.
Not long ago, this was a company that could charge $128 for leggings and sell them out quickly. It used to be the staple of athleisure clothing, but now it seems like somewhat of an afterthought.
So the real question is whether the market has correctly repriced a brand that lost its edge, or overshot on a company that is still one of the most profitable names in apparel.
Why Lululemon stock fell so far The decline has three layers, and they stack. The first is the consumer. Lululemon's Americas business -- roughly two-thirds of revenue -- posted comparable sales down 12% in the quarter ended Aug. 2, and the company now expects full-year revenue to fall 5% to 7%, with the third quarter guided even worse. For a brand that grew 30% a year not long ago, a shrinking top line is a new experience. Shoppers who used to pay full price for a new color are waiting for markdowns or buying from the newer, cheaper brands that copied Lululemon's playbook.
Image source: Getty Images.
The second layer is leadership. The company spent most of 2026 being run by two interim co-CEOs before Heidi O'Neill, a former Nike executive, took over on Sept. 8. Less than a month later, she reorganized the senior team. Two long-tenured executives are leaving, two new roles were filled from outside, and searches are still open for a chief brand officer and chief technology officer. This shows some uncertainty from the top, and markets typically price in uncertainty before they price results.
The third layer is the valuation math itself. That 8.2 multiple rests on trailing earnings of $12.20 per share, which include $0.86 in one-time tariff refunds and a strong back half of last year. Management's guidance for this year is $9.48 to $9.73 per share, which puts the stock closer to 10 times earnings. That's still cheap, but not as cheap as the headline suggests.
NKE Nike$37.59-$0.29 (-0.77%)
NYSE · As of 1:51 PM ET 10/21/26
What Wall Street may be missing about Lululemon This does not look like a broken company. Even in a quarter where sales fell, Lululemon earned an 18.8% operating margin, ended with $1.4 billion in cash, and repurchased 2.7 million shares for $330 million. The company is deliberately shrinking its share count. Companies in real trouble rarely have the cash to shrink their share count while revenue declines. International revenue also grew 4%, and the company opened nine net new stores to reach 825.
In my opinion, the more interesting signal is the Oct. 7 restructuring. O'Neill said the plan "starts with putting product, design, and innovation at the center of how we operate." She hired Maggie Gauger, who ran Athleta for The Gap and previously led Nike's North America women's business, into a new president and chief product officer role that pulls design, merchandising, footwear, and materials science under one person, per Quartz. Joseph Godsey, from Walmart Canada and before that Adidas, became chief operating officer to speed the path from design to shelf.
My opinion is that the brand is fine, and that the product pipeline got stale. If that is right, it is fixable, and apparel product cycles run 12 to 18 months.
WMT Walmart$117.87+$0.02 (+0.02%)
NASDAQ · As of 1:55 PM ET 10/21/26
That diagnosis could be wrong, though. If customers left because the brand stopped feeling special rather than because the product got stale, a new org chart won't win them back quickly, and it definitely doesn't change customer habits. Selling expenses have also climbed from 37.7% to 41.7% of revenue. Lululemon is spending more on marketing while sales shrink, and that squeeze will get worse before the new team's work shows up in stores. Nike's own slow recovery is a reminder that apparel turnarounds take time.
So is Wall Street wrong? Partly, but at the same time, not really. The stock fell for real reasons, and the next two quarters will probably look ugly. But the current price assumes almost nothing will get fixed, and that feels too pessimistic for a company with this much cash, these margins, and a leadership team that has named the problem. A small starter position, or a spot on the watch list, makes sense here, with the Dec. 10 third-quarter report as the first test.
Lululemon (LULU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this athletic apparel maker have returned -3.5% over the past month versus the Zacks S&P 500 composite's +0.7% change. The Zacks Textile - Apparel industry, to which Lululemon belongs, has gained 6.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Lululemon is expected to post earnings of $0.97 per share for the current quarter, representing a year-over-year change of -62.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $9.55 for the current fiscal year indicates a year-over-year change of -28%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $8.62 indicates a change of -9.7% from what Lululemon is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Lululemon.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Lululemon, the consensus sales estimate for the current quarter of $2.31 billion indicates a year-over-year change of -10%. For the current and next fiscal years, $10.5 billion and $10.58 billion estimates indicate -5.5% and +0.8% changes, respectively.
Last Reported Results and Surprise HistoryLululemon reported revenues of $2.42 billion in the last reported quarter, representing a year-over-year change of -4.3%. EPS of $2.06 for the same period compares with $3.1 a year ago.
Compared to the Zacks Consensus Estimate of $2.47 billion, the reported revenues represent a surprise of -2.07%. The EPS surprise was +15.08%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Lululemon is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lululemon. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.
Shares of Lululemon (LULU -0.45%) have been beaten down over the past few years, but this week the stock popped more than 5% at times. A rotation out of tech stocks into consumer discretionary is the most likely reason for the gain. The rise, albeit small, is welcomed by investors who have watched the stock plummet by more than 75% over the past five years.
The apparel company is facing a slew of problems. From declining revenue and comparable sales to a cut in full-year guidance and reputational damage, the challenges are vast for the new CEO, Heidi O'Neill, who took the helm just a month ago. In the second quarter of 2026, revenue fell 4% to $2.4 billion while comparable sales were down 9%.
On the positive side, Lululemon carries no debt on its balance sheet and has about $1.4 billion in cash. The company is also buying back shares.
Image source: The Motley Fool.
So does that mean this small jump in the stock is worth buying into? Ultimately, I don't think so, or at least not right at the moment. The stock is definitely cheap. Its trailing P/E ratio is in the single digits, and forward is about 10 times earnings. Yet, it's inexpensive for a reason. Sales continue to fall, and I need to see O'Neill implement a turnaround strategy that can truly revive the brand over the long term.
I do believe there's hope for Lululemon, but it's going to take some time for this brand to reinvent itself.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
BFA vyšetřuje Lululemon kvůli možnému klamání investorů poté, co akcie společnosti 4. září 2026 klesly o 17,4 % v reakci na snížení výhledu tržeb, marží a EPS.
NEW YORK, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into lululemon athletica inc. (NASDAQ:LULU) for potential securities fraud after significant stock drops.
If you invested in Lululemon, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/lululemon-class-action-lawsuit.
Key Details of the Lululemon ($LULU) Class Action Investigation:
Investigation Overview: Securities fraud investigation relating to Lululemon’s misrepresentations about the strength of its growth and overall business healthLargest Stock Drop: September 4, 2026 – 17.4% Stock DropAction: Contact BFA Law to discuss your rights Why is Lululemon Being Investigated for Securities Fraud?
Lululemon is being investigated for securities fraud following significant stock drops. The decline in Lululemon’s stock price caused significant losses to investors.
Lululemon is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. Lululemon’s apparel includes pants, shorts, tops, and jackets designed for athletic activities, as well as fitness-oriented apparel and accessories.
BFA is investigating whether Lululemon misled investors about the strength of its growth and overall business health.
Why did Lululemon’s Stock Drop?
On April 22, 2026, after market close, Lululemon announced that Heidi O’Neill would be appointed as CEO effective September 8, 2026. Analysts expressed skepticism that O’Neill was well-suited for this role given her background.
On this news, the price of Lululemon stock declined by $21.79 per share, or 13.3%, from a closing price of $163.45 per share on April 22, 2026, to a closing price of $141.66 per share on April 23, 2026.
Then, on June 4, 2026, after market close, Lululemon disclosed that gross margins were down 4% year-over-year. Further, sales trends slowed at the end of the quarter due to both negative media commentary about Lululemon’s products and underwhelming results from new product launches.
On this news, the price of Lululemon stock declined by $10.96 per share, or 8.6%, from a closing price of $124.92 per share on June 4, 2026 to a closing price of $114.23 per share on June 5, 2026.
Then, on September 3, 2026, after market close, Lululemon announced a year-over-year revenue decline of 4.3%, including a 10% decline in same-store sales a 20% decline in Lululemon’s core products—leggings and women’s tops—during the quarter. Management lowered FY26 revenue, operating margins, EPS guidance, and issued fiscal 3Q26 EPS guidance which was 60% below analysts’ expectations.
On this news, the price of Lululemon stock declined by $21.16 per share, or 17.4%, from a closing price of $121.77 per share on September 3, 2026 to a closing price of $100.61 per share on September 4, 2026.
Click here for more information: https://www.bfalaw.com/cases/lululemon-class-action-lawsuit.
What Can You Do?
If you invested in Lululemon, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Pomerantz LLP prověřuje možné porušení zákonů o cenných papírech společností lululemon po slabších tržbách a snížení celoročního výhledu tržeb i zisku.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of lululemon athletica inc. ("lululemon" or the "Company") (NASDAQ: LULU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether lululemon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On September 3, 2026, lululemon reported its financial results for the second quarter of fiscal year 2026. Among other items, lululemon reported lower-than-expected revenue and sharply lowered its full-year revenue and earnings guidance. The Company's management attributed its disappointing quarterly results to negative media and social-media commentary, softer-than-planned new-product launches, and weaker store traffic.
On this news, lululemon's stock price fell $21.16 per share, or 17.38%, to close at $100.61 per share on September 4, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
BFA Law prověřuje Lululemon kvůli možnému klamání investorů; akcie 4. září 2026 během jednoho dne klesly o 17,4 % poté, co společnost snížila výhled tržeb, provozní marže a EPS.
BFA Law is investigating whether Lululemon committed securities fraud by making false and misleading statements to investors regarding the strength of its growth and overall business health.
, /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into lululemon athletica inc. (NASDAQ: LULU) for potential securities fraud after significant stock drops.
If you invested in Lululemon, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/lululemon-class-action-lawsuit.
Key Details of the Lululemon ($LULU) Class Action Investigation:
Investigation Overview: Securities fraud investigation relating to Lululemon's misrepresentations about the strength of its growth and overall business health
Largest Stock Drop: September 4, 2026 – 17.4% Stock Drop
Action: Contact BFA Law to discuss your rights
Why is Lululemon Being Investigated for Securities Fraud?
Lululemon is being investigated for securities fraud following significant stock drops. The decline in Lululemon's stock price caused significant losses to investors.
Lululemon is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. Lululemon's apparel includes pants, shorts, tops, and jackets designed for athletic activities, as well as fitness-oriented apparel and accessories.
BFA is investigating whether Lululemon misled investors about the strength of its growth and overall business health.
Why did Lululemon's Stock Drop?
On April 22, 2026, after market close, Lululemon announced that Heidi O'Neill would be appointed as CEO effective September 8, 2026. Analysts expressed skepticism that O'Neill was well-suited for this role given her background.
On this news, the price of Lululemon stock declined by $21.79 per share, or 13.3%, from a closing price of $163.45 per share on April 22, 2026, to a closing price of $141.66 per share on April 23, 2026.
Then, on June 4, 2026, after market close, Lululemon disclosed that gross margins were down 4% year-over-year. Further, sales trends slowed at the end of the quarter due to both negative media commentary about Lululemon's products and underwhelming results from new product launches.
On this news, the price of Lululemon stock declined by $10.96 per share, or 8.6%, from a closing price of $124.92 per share on June 4, 2026 to a closing price of $114.23 per share on June 5, 2026.
Then, on September 3, 2026, after market close, Lululemon announced a year-over-year revenue decline of 4.3%, including a 10% decline in same-store sales a 20% decline in Lululemon's core products—leggings and women's tops—during the quarter. Management lowered FY26 revenue, operating margins, EPS guidance, and issued fiscal 3Q26 EPS guidance which was 60% below analysts' expectations.
On this news, the price of Lululemon stock declined by $21.16 per share, or 17.4%, from a closing price of $121.77 per share on September 3, 2026 to a closing price of $100.61 per share on September 4, 2026.
Click here for more information: https://www.bfalaw.com/cases/lululemon-class-action-lawsuit.
What Can You Do?
If you invested in Lululemon, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360, and "SuperLawyers" by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff's securities litigation law firm, with clients noting: "[t]here is no better service provider in the practice area," "[t]he interest of the client is always front and center," and "[t]here isn't a better firm in this space." One testimonial described the firm as "nimble and entrepreneurial," with a "relentless focus on adding value for clients."
BFA's notable successes include a recovery of over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
New York, New York--(Newsfile Corp. - October 8, 2026) - Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of lululemon athletica inc. ("lululemon" or "the Company") (NASDAQ: LULU). Investors who purchased lululemon securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/cases/lululemon-athletica-inc-lulu-class_action_lawsuit.
lululemon Investigation Details
On September 3, 2026, lululemon reported its financial results for the second quarter of fiscal year 2026. Among other items, lululemon reported lower-than-expected revenue and sharply lowered its full-year revenue and earnings guidance. The Company's management attributed its disappointing quarterly results to negative media and social-media commentary, softer-than-planned new-product launches, and weaker store traffic. On this news, lululemon's stock price fell $21.16 per share, or 17.38%, to close at $100.61 per share on September 4, 2026.
What's Next for lululemon Investors?
If you are aware of any facts relating to this investigation or purchased lululemon securities, you can assist this investigation by visiting the firm's site: bgandg.com/cases/lululemon-athletica-inc-lulu-class_action_lawsuit, You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC: 917-590-0911
No Cost to lululemon Investors
We, Bronstein, Gewirtz & Grossman, LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for lululemon Securities Investigation?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/317676
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Lululemon vytvořil nové pozice prezidentky a ředitelky pro produkty a provozního ředitele; Jefferies tyto změny vítá, ale čeká na zlepšení prodejů za plnou cenu a stabilizaci trendů.
Lululemon Athletica Inc (NASDAQ:LULU) has overhauled its leadership structure in what analysts at Jefferies called a step in the right direction.
The bank said significant work remains and it wants to see better full-price selling and stabilizing trends before becoming more constructive.
The company named Maggie Gauger president and chief product officer and Joseph Godsey chief operating officer, both newly created roles that take effect on October 26.
Nikki Neuburger, the chief brand and product activation officer, and Ted Dagnese, the chief supply chain officer, will leave the company on November 6.
Lululemon announced the changes after the close and is searching for a chief brand officer, a chief communications officer and a chief technology officer, leaving three C-suite positions open.
Jefferies said a single product leader at president level brings clear accountability for building a stronger pipeline of differentiated products, while a new chief operating officer should add operating discipline.
Management said the aim is to strengthen links between brand, product and the guest experience, with product, design and innovation at the center of how the company operates.
O'Neill said Lululemon has work to do to become a stronger and more competitive company, a view Jefferies shares.
Jefferies said the path remains long, and the open chief brand officer position matters because brand is a core part of the company's story.
The bank said new product leadership will take several seasons to show up in the assortment.
Jefferies said the shares already reflect much bad news, but it would want to see better full-price selling and stabilizing trends before turning more constructive.
Pomerantz LLP prověřuje možné porušení federálních zákonů o cenných papírech společností lululemon athletica inc. poté, co firma snížila celoroční výhled tržeb a zisku; akcie 4. září 2026 klesly o 17,38 %.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of lululemon athletica inc. ("lululemon" or the "Company") (NASDAQ: LULU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether lululemon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On September 3, 2026, lululemon reported its financial results for the second quarter of fiscal year 2026. Among other items, lululemon reported lower-than-expected revenue and sharply lowered its full-year revenue and earnings guidance. The Company's management attributed its disappointing quarterly results to negative media and social-media commentary, softer-than-planned new-product launches, and weaker store traffic.
On this news, lululemon's stock price fell $21.16 per share, or 17.38%, to close at $100.61 per share on September 4, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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Lululemon Athletica Inc. (NASDAQ:LULU) shares touched a fresh 52-week low near $94 Friday, extending a decline that’s left the stock down 54% so far this year.
Lululemon Athletica stock is at significant support. What’s behind LULU weakness? Lululemon’s Q2 Miss and Steep Guidance Cut Continue Weighing On SharesLululemon’s stock has been under pressure since its second-quarter report on September 3. Revenue came in at $2.42 billion, short of the $2.46 billion analysts had penciled in. Sales overall slipped 4% from a year earlier.
The Americas business took the bigger hit, down 8%, while international sales grew 4%. Same-store sales dropped 9% across the board. The company ended the quarter running 825 stores after adding nine new company-operated locations, with inventory levels down 1% year-over-year to $1.7 billion.
Guidance for the months ahead landed even worse. Lululemon pointed to third-quarter sales of just $2.29 billion to $2.32 billion, a steep drop from the $2.53 billion Wall Street wanted. Profit guidance told a similar story, with the company eyeing 93 cents to 98 cents per share against a $2.43 consensus.
Full-year numbers took an even bigger hit. Revenue guidance dropped to a range of $10.35 billion to $10.50 billion, down from an earlier $11 billion to $11.15 billion target and well under the $11.04 billion analysts expected. Profit guidance fell similarly, now pegged at $9.48 to $9.73 per share versus a prior $10.95 to $11.15 range and a $10.96 estimate.
Shares Break Below Their Prior 52-Week LowToday’s dip to around $94 pushed Lululemon past its previous 52-week floor of $95.35. The stock’s high over that same stretch sat at $225.98, a gap that shows just how much ground shares have lost over the past year.
With the stock now down 54% year-to-date, the continued slide points to lingering doubt among investors following the steep cuts to growth and profit expectations the company laid out earlier this month.
LULU Shares Are FallingLULU Price Action: Lululemon shares were down 0.15% at $95.72 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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Nike klesá o 8 % po zklamání z tržeb, slabém výhledu a oznámení propouštění. Tržby za fiskální 1. čtvrtletí 2027 činily 11,21 mld. USD, pod odhadem 11,32 mld. USD.
Nike is cratering on earnings while rivals Lululemon and On Holding barely flinch, raising a pointed question about whether the sportswear giant is fighting a problem unique to itself or simply the first to feel an industry-wide reckoning.
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Nike (NYSE:NKE | NKE Price Prediction) is taking a company-specific hit to its turnaround story, while the rest of athletic apparel holds largely steady. Shares of Nike are down 8% to $32.34 in morning trading after fiscal 2027 first-quarter results showed a revenue miss, a weak outlook and job cuts. Nike stock was already trading near its 52-week low.
Meanwhile, shares of Lululemon (NASDAQ:LULU) are nearly unchanged at $95.85. On Holding (NYSE:ONON) stock trades at $30.18, also practically unchanged and showing no signs of contagion.
The Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) is unchanged at $108.81, showing the damage is confined to Nike. The SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) is up 1% to $771.34, so the broad equities market is holding up well.
Nike carries a weight of just 1.2% in the XLY sector fund, so the drop barely moves it.
Revenue Miss and Job Cuts Drive Nike Lower Nike’s quarterly revenue came in at $11.21 billion, missing the $11.32 billion consensus and falling 4.3% year over year. Diluted earnings came in at $0.48 per share, ahead of expectations, on a wider gross margin.
The heavier blow came from Nike’s fiscal 2027 outlook, which calls for revenue to decline by a high-single-digit percentage.
Nike also unveiled Pace, an overhaul targeting $2.5 billion in cumulative savings through fiscal 2031 at a cost of $1 billion in pre-tax charges, mostly employee-related. Chief Executive Officer Elliott Hill wrote in a letter to employees: “This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty. I don’t take that lightly.” Decisions on affected roles are expected to begin next calendar year and beyond.
Lululemon and On Holding Hold Their Ground Lululemon stock is down 54% year to date, a slide that deepened after the company cut its full-year guidance in September. During the earnings call, Lululemon executives traced the company’s weakness to brand sentiment and traffic, stating, “We’re not pointing to macro specifically as a key issue.” That framing helps explain why Nike’s warning leaves Lululemon steady.
On Holding stock is down 35% year to date, yet its recent results look far healthier than Nike’s. Net sales rose 13.5% in the latest quarter, while gross margin expanded to 65.4%, moving management to lift its full-year floor to at least 65%. That momentum gives it little reason to track Nike lower.
Dick’s Sporting Goods (NYSE:DKS) offers a retail-channel read. In August, the retailer’s chief executive cited “growing pressure across portions of the athletic footwear and apparel marketplace,” while Dick’s executives described running and performance product as healthy. Nike’s call reflected that split, with its performance business growing at a high-single-digit pace as Nike Sportswear declined by a low-double-digit percentage.
Nike’s Investor Day Shapes the Next Move Nike stock is now down 48% year to date. Hill stated that Nike has “more work to do in NIKE Sportswear, Jordan Brand and Greater China,” and management expects pressure there could remain into fiscal 2028. More detail on Pace and longer-term targets is due at its investor day in November.
Nike still has supports, including its performance business, wider gross margin and quarterly dividend of $0.41 per share, though the dividend offers limited buffer in a multiyear turnaround. Investors should size holdings carefully given falling revenue guidance and Pace savings that mostly arrive in fiscal 2029 and 2030.
Lululemon shareholders should weigh the company’s lowered full-year outlook, which calls for revenue to fall 5% to 7%. On Holding looks stronger, though Section 301 tariffs imposed in July could lift costs, so stakes there may warrant moderation. Dick’s remains a useful channel check on how quickly Nike’s lifestyle inventory sells.
Contact [email protected] for any questions or corrections.
lululemon mění produktovou strategii, snižuje počet SKU a zvyšuje doplňování zásob, aby rychleji reagoval na poptávku. Nové styly jako Scuba, Steady State a Define dostaly od zákazníků příznivou odezvu.
Key Takeaways lululemon is updating core franchises, reducing SKUs and boosting inventory discipline.LULU is chasing about 20% more volume this year to react faster to guest demand.lululemon saw favorable guest response to Scuba, Steady State and Define franchises. lululemon athletica inc. (LULU - Free Report) is refocusing its growth strategy around product creation, product activation and enterprise enablement, with the near-term goal of restoring full-price sales growth and strengthening long-term brand health. The company is responding to shifting consumer preferences with a more agile product approach, faster inventory replenishment and a stronger pipeline of new styles.
Management highlighted that it is updating core franchises, reducing SKUs and improving inventory discipline while increasing chase capabilities to quickly replenish products gaining traction. The company is chasing about 20% more volume this year compared with last year, allowing it to react faster to guest demand.
The strategy comes as lululemon navigates inconsistent product performance and weaker demand trends. While some launches have underperformed expectations, management noted positive momentum in newer away-from-body women’s bottoms, including the Groove Wide-Leg, Align Foldover Jogger, Breezily and updated Dance Studio Pant. The company also saw favorable guest response to Scuba, Steady State and Define franchises, while men’s Metal Vent Tech tees and golf tops continued to perform well. These products could help offset pressure in traditional leggings, where sales declined approximately 20% in second-quarter fiscal 2026 as consumer preferences shifted toward looser silhouettes.
Management believes that improved product execution, combined with stronger brand activation and marketing investments, can help rebuild demand over time. However, the recovery depends on whether new styles can consistently attract customers and support full-price selling.
Second-quarter fiscal 2026 results showed that overall product launches remained uneven, contributing to weaker traffic and conversion trends in key markets. As lululemon continues to refine its assortment and invest in winning categories, the ability of these new styles to resonate with consumers will remain a key factor in determining the pace of its sales recovery.
LULU’s Price Performance, Valuation and EstimatesShares of lululemon have lost 39.9% in the past six months compared with the industry and the Consumer Discretionary sector’s decline of 4.3% and 4%, respectively. The Zacks Rank #5 (Strong Sell) company has underperformed the S&P 500’s rally of 14% in the same period.
LULU’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 10.59X compared with the industry’s average of 14.41X.
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The Zacks Consensus Estimate for LULU’s fiscal 2026 and 2027 earnings suggests a year-over-year decline of 28.1% and 5.5%, respectively. The company’s EPS estimate for fiscal 2026 and 2027 has moved down 2.1% and 2.4%, respectively, in the past seven days.
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3 Stocks Looking GoodKontoor Brands Inc. (KTB - Free Report) is a lifestyle apparel company that designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kontoor Brands’ current financial-year sales and earnings indicates a decline of 14.3% and 6.1%, respectively, from the prior-year reported levels. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada, and Australia. The company currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Savers Value’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures, and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. The company currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Superior Group’s current financial-year sales and earnings indicates growth of 3.1% and 39.1%, respectively, from the year-ago reported numbers. SGC delivered a trailing four-quarter earnings surprise of 90.2%, on average.
lululemon ve 2. čtvrtletí vykázal tržby ve výši 2,4 miliardy USD, což bylo o 4 % méně, a srovnatelné tržby klesly o 9 %. Zisk podpořily vratky cel ve výši 134,5 milionu USD, ale firma snížila výhled na fiskální rok 2026.
Key Takeaways LULU reported Q2 revenue of $2.4 billion, down 4%, while comparable sales fell 9%.lululemon recognized $134.5 million in tariff refunds, lifting diluted EPS by $0.86.LULU lowered fiscal 2026 outlook as North America trends and margins faced pressure. lululemon athletica inc. (LULU - Free Report) reported second-quarter fiscal 2026 results that reflected a contrast between tariff-related earnings support and continued weakness in underlying demand trends. While tariff refunds helped lift reported profitability, revenue declines, weaker comparable sales and reduced guidance highlighted ongoing operating challenges.
The company’s latest results have shifted investor focus toward whether temporary margin benefits can offset weaker traffic, inconsistent product performance and pressure across key markets. LULU currently carries a Zacks Rank #5 (Strong Sell), with a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of C.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LULU Earnings Benefit From Tariff Refundslululemon’s second-quarter results received support from tariff refunds. The company recognized $134.5 million of IEEPA tariff refunds and $4.1 million of associated interest, which increased diluted earnings per share by $0.86.
The benefit improved reported profitability but does not fully represent the underlying cost environment. Second-quarter gross margin increased 200 basis points year over year to 60.5%, primarily due to the tariff refund benefit. Excluding the refund, product margin remained pressured by tariffs, markdowns and fixed-cost deleverage.
Operating income declined 13% year over year to $453.7 million, while operating margin decreased to 18.8%. The company also noted that tariffs, excluding the refund benefit, negatively affected gross margin during the quarter.
The impact of tariff refunds highlights the difference between reported earnings performance and underlying operating trends, which remain tied to demand recovery, pricing and cost management.
LULU Revenue Trends Show Regional WeaknessRevenue trends reflected uneven performance across regions. Second-quarter revenue declined 4% year over year to $2.4 billion, while comparable sales declined 9% and 10% on a constant-dollar basis.
The Americas remained the largest pressure point. Revenue in the region declined 8%, while comparable sales decreased 12%. The United States also reported an 8% revenue decline, while Canada revenue declined 11% on a reported basis.
International markets provided some support, although growth moderated. China Mainland revenue increased 4% on a reported basis but declined 2% on a constant-dollar basis, while Rest of World revenue increased 5% on a reported basis and 6% in constant currency.
The competitive environment adds pressure as global athletic and lifestyle apparel brands continue to invest in product innovation and consumer engagement. NIKE Inc. (NKE - Free Report) competes across athletic footwear and apparel categories through its global brand platform, product launches and direct-to-consumer strategy. Ralph Lauren Corporation (RL - Free Report) also operates in the broader premium apparel market, with its lifestyle positioning creating overlap in select consumer segments where brand identity and product differentiation influence purchasing decisions.
Management cited weaker traffic, softer product launch responses and brand sentiment pressures as factors affecting performance. In China Mainland, the company said negative commentary in media and social channels affected traffic and sales momentum.
LULU Guidance Highlights a Difficult Second HalfManagement lowered its fiscal 2026 outlook as current trends pointed to a slower recovery. The company now expects full-year revenue of $10.35 billion to $10.50 billion, representing a decline of 5% to 7%, with earnings per share projected at $9.48 to $9.73.
For the third quarter of fiscal 2026, lululemon expects revenue of $2.29 billion to $2.32 billion, representing a decline of 10% to 11%. Earnings per share are expected at 93 cents to 98 cents compared with $2.59 in the prior-year quarter.
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The revised outlook reflects continued pressure across key operating areas. Management noted that the second-half outlook assumes a slower trend in North America and relatively consistent international performance compared with recent results.
The company also expects full-year gross margin to decline approximately 80 basis points, with higher markdowns and fixed-cost deleverage offsetting benefits from tariff mitigation efforts.
lululemon Adjusts Costs and Product Strategylululemon is responding to weaker demand through changes in product development, inventory management and expense controls. Management’s action plan focuses on product creation, product activation and enterprise efficiency to improve full-price sales trends over time.
The company is increasing marketing investments while also tightening expenses across the organization. Initiatives include supply chain efficiencies, procurement savings, technology investments and tighter control of discretionary spending.
Product strategy remains a key part of the recovery effort. Management highlighted stronger performance from newer away-from-body women’s bottoms, including Groove Wide-Leg, Align Foldover Jogger, Breezily and updated Dance Studio Pant. However, leggings sales declined approximately 20% in the second quarter, reflecting changing consumer preferences.
lululemon is also improving inventory responsiveness by chasing approximately 20% more volume this year compared with last year, allowing the company to adjust faster to customer demand.
LULU Ratings Add Perspective After EarningsLULU’s Zacks Rank and Zacks Style Scores provide additional context following the earnings release. Zacks Style Scores are designed as complementary indicators that evaluate value, growth, momentum and combined style characteristics alongside the Zacks Rank.
The stock’s Value Score of B reflects its lower valuation metrics, while the Growth Score of B highlights longer-term growth characteristics. The Momentum Score of F reflects weaker recent price trends, and the VGM Score of C combines these factors into a broader style measure.
The latest earnings report highlights the difference between temporary earnings support and underlying business momentum. Tariff refunds provided near-term assistance, but investors continue to monitor revenue trends, product acceptance and management’s recovery initiatives as lululemon works through a challenging operating environment.
Nike i Lululemon se v září propadly na několikaletá minima. Článek vidí větší šanci na obrat u Lululemon, která je levnější na 10násobku letošních zisků.
Nike (NKE +1.62%) and Lululemon (LULU +3.55%) were both once considered resilient stocks in the crowded athletic apparel market. Nike is the world's largest athletic footwear maker, while Lululemon was one of the fastest-growing yoga and athleisure apparel brands.
But this month, both stocks sank to their multi-year lows. Lululemon, which reached a record high of $511.29 per share in Dec. 2023, now trades at $96 per share. Nike, which closed at an all-time high of $161.91 per share in Nov. 2021, has dropped to $36. Let's see why these two stocks collapsed -- and which one has a better shot at a comeback.
Image source: Getty Images.
What happened to Nike? Nike's revenue growth was flat in fiscal 2024 (which ended in May 2024), fell 10% in fiscal 2025, and was flat again in fiscal 2026. That slowdown can be attributed to its weak sales in North America, which offset its overseas growth, and to its decision to cut ties with wholesale retailers to expand its direct-to-consumer business through its first-party stores and e-commerce platforms.
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As Nike removed its shoes from wholesale retailers, its competitors -- including Deckers' Hoka, New Balance, and On Holding -- eagerly grabbed that shelf space and expanded their shares of the running and lifestyle sneaker markets. Nike also relied too heavily on retro classics (like the Air Force 1, Dunk, and Air Jordan) instead of creating fresh, performance-oriented footwear to stay ahead of its challengers.
To sell more shoes, Nike relied more heavily on markdowns -- which reduced its gross margin from 44.7% in fiscal 2024 to 43.2% in fiscal 2026. Its EPS plummeted from $3.73 in fiscal 2024 to $2.10 in fiscal 2026. CEO Elliot Hill, who took the helm in Oct. 2024, expects fiscal 2027 to be a "reset" year in which the company will sacrifice its sales growth to stabilize its business.
Analysts expect Nike's revenue and EPS to decline 2% and 19%, respectively, in fiscal 2027. It's rebuilding its relationships with wholesale retailers, clearing out its inventory, and developing new, higher-performance shoes, but it still needs to overcome many near-term challenges.
What happened to Lululemon? Lululemon was built from the ground up as a direct-to-consumer brand through its own e-commerce website and brick-and-mortar stores, so it didn't face the same wholesale-retailer issues as Nike. However, Lululemon's top-line growth is also decelerating.
In fiscal 2023 (which ended in Feb. 2023), Lululemon's revenue rose 19% -- but only grew 10% in fiscal 2024 and 5% in fiscal 2025. Its gross margin also shrank from 58.3% in fiscal 2023 to 56.6% in fiscal 2025, but its EPS rose from $12.20 to $13.26 as it bought back more shares.
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That slowdown was caused by its soft sales of women's apparel in North America, where it faces fierce competition from smaller brands like Alo Yoga and Vuori. Like Nike, the weakness of Lululemon's North American business offset its stronger overseas growth.
Lululemon also relied on markdowns to boost its sales. That strategy diluted its premium appeal and exacerbated the pressure on its gross margins -- which were already being squeezed by the Trump Administration's tariffs on products manufactured in Asia.
Lululemon brought in a new CEO, Heidi O'Neill, to lead its turnaround efforts this year. However, O'Neill's prior experience as a Nike executive doesn't inspire much confidence in a quick recovery. Lululemon wants to expand its apparel lineup (with more loose-fitting, relaxed apparel) and launch new marketing campaigns to stabilize sales. Yet analysts still expect its revenue and EPS to decline by 6% and 27%, respectively, in fiscal 2027.
Which stock has a better shot at a comeback? Nike and Lululemon both face formidable near-term challenges. However, Nike still trades at 21 times this year's earnings while Lululemon looks significantly cheaper at 10 times this year's earnings. Therefore, I think Lululemon has less downside than Nike.
Lululemon still has a lot of work to do, but any positive news could drive its stock much higher. Meanwhile, Nike hasn't hit bargain-bin valuations yet because investors are still paying a premium for its brand recognition and past performance. So while I wouldn't buy Lululemon yet, I think it has a clear shot at outperforming its larger competitor through the end of this year.
Lululemon za poslední měsíc odepsal 18 % poté, co po výsledcích za druhé čtvrtletí podruhé letos snížil celoroční výhled. Firma uvedla slabší návštěvnost obchodů, horší reakci na nové produkty a pokles klíčové kategorie legín.
Lululemon stock has shed nearly a fifth of its value in a single month, but figuring out how much of that damage belongs to Lululemon specifically and how much spilled across the whole athletic-apparel sector changes the calculus for anyone…
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Lululemon Athletica (NASDAQ:LULU | LULU Price Prediction) stock is under sustained pressure after a September earnings update that lowered management’s outlook for the year. Retail broadly softened alongside it, and the broad market held up better, which frames the question of how much of the damage is company-specific and how much is sector-wide. Peer moves are part of that same picture, since athletic-apparel names moved lower together across the past month.
The SPDR S&P Retail ETF (NYSEARCA:XRT) is down 6% over the past month. By comparison, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 2% over the same span. That retail fund fell meaningfully more than the broad market, so part of what hit Lululemon reached the sector around it, and the fund is modified equal-weighted with no dominant position, meaning its decline reflects breadth across retail rather than any single stock pulling it down.
Lululemon shares are down 18% over the past month and trade at $97.69. Nike (NYSE:NKE) stock is down 10% across the same span. Meanwhile, On Holding (NYSE:ONON) shares are down 14% over the same period.
Guidance Cut Sets the Tone Lululemon’s month turned on a single event. Meghan Frank, Lululemon’s interim co-chief executive and finance chief, reported second-quarter results on September 3 and lowered the company’s full-year outlook, marking the second guidance revision of the year for the brand.
Frank set Lululemon’s revised full-year diluted earnings-per-share range at $9.48 at the low end and $9.73 at the high end, against $13.26 in the prior year. That step-down is the reason Lululemon stock can’t simply lean on the headline profit figure from the quarter itself.
One detail matters for reading Lululemon’s quarter cleanly. Frank noted that tariff refunds and associated interest, net of tax, contributed 86 cents to Lululemon’s quarterly earnings per share, meaning the reported profit line was flattered by money the company itself said isn’t baked into the forward guide.
Why Lululemon’s Peers Also Fell The peer picture complicates the read on Lululemon stock. Nike stock dropped over the same month, and On Holding shares fell hard alongside it, even though both operate different mixes, price points and channel structures than Lululemon does. The SPDR S&P Retail ETF also declined, and that breadth suggests the pressure reached beyond any single athletic-apparel name.
Interim co-chief executives Meghan Frank and Andre Maestrini attributed Lululemon’s shortfall on the September 3 call to negative commentary in media and social channels that hurt store traffic, a softer than planned response to new product launches, inconsistent performance across the assortment, and a sharp decline in the core leggings category. They described similar brand-sentiment pressure in China mainland for Lululemon, where results came in well below the company’s expectations.
Weighing Both Sides of the Sell Question The bear case for Lululemon stock draws directly from what management described. This was the second cut of the year, the team pointed to brand perception and product response rather than to weather or a one-off disruption, and the profit line was propped up by a tariff refund the company itself said isn’t repeating in guidance.
A counter for Lululemon stock rests on what the price already reflects. The peer group fell too, and a leadership change gives the company an opening to reset the plan (on the September 3 call. Moreover, the interim co-chief executives said incoming Chief Executive Heidi O’Neill would join the following week), and a stock down that much in a month has already taken a real markdown, according to Lululemon. Whether Lululemon’s problems are cyclical for the category or particular to this brand, the peer figures argue both readings are true at once.
What to Watch Next Investors can watch for whether Lululemon’s traffic and product-launch response stabilize in the back half of the year. Shareholders may want to check for signs that the incoming chief executive’s review changes the plan management laid out on the September 3 call, according to Lululemon.
Position sizing matters here for anyone holding Lululemon shares. The stock carries real fundamental risk after 2 guidance cuts within a single year, so their exposure should reflect that risk. If holders keep LULU stock in their portfolios, their position sizes should be small enough that another disappointing quarter doesn’t force a decision they would rather not make.
Contact [email protected] for any questions or corrections.
Lululemon snížil celoroční výhled už podruhé letos a akcie spadly za den o 17 %. Tržby dál klesají, když srovnatelné tržby v posledním čtvrtletí klesly o 9 %.
Lululemon Athletica (LULU +1.49%) stock closed at $96.88 on Thursday, touching a fresh 52-week low during the session. Shares now trade below $100 for the first time in more than eight years.
The latest leg down came after the athletic-apparel retailer cut its full-year outlook for the second time this year alongside last week's earnings report. Together, they sent the stock down 17% in a day.
Michael Burry sees an opportunity. The famed investor wrote on Substack the evening the report landed that Lululemon is now the largest position in his portfolio.
In a follow-up note the next day, he reportedly called the stock a fat pitch below $100 and said he plans to buy more. By his estimate, the stock could return 15% to 20% annually over the next 15 to 20 years if the brand regains its footing.
Those are bold numbers for a business whose sales are falling. But at about 10 times the midpoint of this year's guided earnings, the projection deserves a closer look.
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Cash and buybacksBurry disclosed a full-sized stake in the spring, and Lululemon's financial strength is central to his case. Lululemon ended the fiscal second quarter of 2026 (the period ended Aug. 2, 2026) with nearly $1.4 billion in cash and no debt on its balance sheet.
The company is also buying back stock while it is down: 2.7 million shares for $330 million during the fiscal second quarter, more than 2% of all its shares in three months. And each dollar spent goes further as the stock falls. Lululemon's guided earnings for this year now equal nearly 10% of its share price.
What would 15% a year require?From about $97 a share, a 15% annual return over 15 years puts the stock near $790. At the top of Burry's range, 20% a year for 20 years, shares would top $3,700 -- nearly 40 times today's price.
If the stock's price-to-earnings multiple stayed at about 10, earnings per share would have to compound at those same rates -- heroic for a company whose earnings are guided to fall this year. But earnings don't have to do all the work. If the price-to-earnings multiple simply doubled to 20 times earnings over 15 years, that change alone would add almost 5% a year. Additionally, profits recycled into buybacks at today's valuation could grow earnings per share at a high-single-digit rate even if total profit never grew. With even modest growth on top, the bottom of Burry's range arguably comes within reach.
In other words, I think the bet doesn't need Lululemon to become a growth story again. It needs earnings to stop falling.
Sales are still shrinkingThat condition is the problem right now. Showing how quickly demand has deteriorated, comparable sales decelerated from 3% growth in the final quarter of fiscal 2025 to 1% growth in this year's fiscal first quarter, then swung to a 9% decline in the fiscal second quarter. Americas comparable sales fell 12% in the latest period. Further, the revenue decline is accelerating. Revenue fell 4% in the fiscal second quarter, and management expects a drop of 10% to 11% year over year in the fiscal third quarter.
Earnings guidance has followed the same path. March's initial outlook called for earnings per share of $12.10 to $12.30. June's cut took the range to $10.95 to $11.15.
Now it is $9.48 to $9.73. Since Lululemon earned $13.26 per share last year, the new midpoint implies a decline of about 28%.
Even the second quarter's reported $2.92 in earnings per share leaned on one-time help. Tariff refunds of $134.5 million, plus associated interest, added $0.86 to the figure. Without that boost, earnings would have fallen by about a third year over year.
Burry read the report the same way. He wrote that things had clearly changed for the worse, and that the headline earnings beat amounted to a big miss once the tariff benefit was accounted for.
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Of course, new CEO Heidi O'Neill, a Nike veteran of more than 25 years, took over this week. But her impact isn't showing up in the numbers yet.
Does Burry's math hold up at today's price? Much of it does. The cash, the buybacks, and the low price-to-earnings multiple all support his case, and I believe he is right that the stock could deliver strong returns without recapturing its former growth rate.
However, his return estimate leans on the brand finding its footing. And every recent number says it hasn't found it yet. I'm not buying alongside him today. If comparable sales stop sliding, I would consider changing my mind.
Lululemon ve čtvrtletí skončeném v červenci 2026 utržil 2,42 miliardy USD, meziročně o 4,3 % méně. Největší slabinu ukázala pevninská Čína s tržbami 407,1 milionu USD, což bylo pod odhady Wall Street.
Have you assessed how the international operations of Lululemon (LULU - Free Report) performed in the quarter ended July 2026? For this athletic apparel maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of LULU's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The recent quarter saw the company's total revenue reaching $2.42 billion, marking a decline of 4.3% from the prior-year quarter. Next, we'll examine the breakdown of LULU's revenue from abroad to comprehend the significance of its international presence.
A Look into LULU's International Revenue StreamsDuring the quarter, Canada contributed $285.82 million in revenue, making up 11.8% of the total revenue. When compared to the consensus estimate of $298.6 million, this meant a surprise of -4.28%. Looking back, Canada contributed $283.34 million, or 11.5%, in the previous quarter, and $321.29 million, or 12.7%, in the same quarter of the previous year.
China Mainland generated $407.1 million in revenues for the company in the last quarter, constituting 16.9% of the total. This represented a surprise of -12.62% compared to the $465.91 million projected by Wall Street analysts. Comparatively, in the previous quarter, China Mainland accounted for $478.4 million (19.4%), and in the year-ago quarter, it contributed $392.9 million (15.6%) to the total revenue.
Of the total revenue, $51.42 million came from Hong Kong SAR, Taiwan, and Macau SAR during the last fiscal quarter, accounting for 2.1%. This represented a surprise of -4.71% as analysts had expected the region to contribute $53.96 million to the total revenue. In comparison, the region contributed $51.41 million, or 2.1%, and $47.63 million, or 1.9%, to total revenue in the previous and year-ago quarters, respectively.
Other geographic areas accounted for 14.1% of the company's total revenue during the quarter, translating to $340.35 million. Revenues from this region represented a surprise of -5.65%, with Wall Street analysts collectively expecting $360.74 million. When compared to the preceding quarter and the same quarter in the previous year, Other geographic areas contributed $320.59 million (13%) and $326.47 million (12.9%) to the total revenue, respectively.
During the quarter, Mexico contributed $28.89 million in revenue, making up 1.2% of the total revenue. When compared to the consensus estimate of $25.55 million, this meant a surprise of +13.09%. Looking back, Mexico contributed $24.66 million, or 1%, in the previous quarter, and $21.92 million, or 0.9%, in the same quarter of the previous year.
Projected Revenues in Foreign MarketsWall Street analysts expect Lululemon to report a total revenue of $2.31 billion in the current fiscal quarter, which suggests a decline of 9.9% from the prior-year quarter. Revenue shares from Canada, China Mainland, Hong Kong SAR, Taiwan, and Macau SAR, Other geographic areas and Mexico are predicted to be 12.5%, 21.5%, 2.2%, 15.7%, and 1%, corresponding to amounts of $289.31 million, $497.67 million, $49.85 million, $362.59 million, and $22.08 million, respectively.
For the full year, a total revenue of $10.62 billion is expected for the company, reflecting a decline of 4.4% from the year before. The revenues from Canada, China Mainland, Hong Kong SAR, Taiwan, and Macau SAR, Other geographic areas and Mexico are expected to make up 12%, 18.5%, 2.1%, 14.1%, and 1% of this total, corresponding to $1.27 billion, $1.96 billion, $220.11 million, $1.5 billion, and $108.68 million, respectively.
In ConclusionLululemon's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At present, Lululemon holds a Zacks Rank #5 (Strong Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Examining the Latest Trends in Lululemon's Stock ValueOver the past month, the stock has lost 17.9% versus the Zacks S&P 500 composite's 0.4% decrease. The Zacks Consumer Discretionary sector, of which Lululemon is a part, has declined 2.3% over the same period. The company's shares have declined 10.7% over the past three months compared to the S&P 500's 4.7% increase. Over the same period, the sector has declined 0.3%
NEW YORK, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of lululemon athletica inc. (“lululemon” or the “Company”) (NASDAQ: LULU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether lululemon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On September 3, 2026, lululemon reported its financial results for the second quarter of fiscal year 2026. Among other items, lululemon reported lower-than-expected revenue and sharply lowered its full-year revenue and earnings guidance. The Company’s management attributed its disappointing quarterly results to negative media and social-media commentary, softer-than-planned new-product launches, and weaker store traffic.
On this news, lululemon’s stock price fell $21.16 per share, or 17.38%, to close at $100.61 per share on September 4, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Michael Burry přesouvá sázky mimo AI a nakupuje call opce hlavně na UNH, REGN a LULU. Největší pozice má v UNH (18,88 %), REGN (18,16 %) a LULU (16,43 %).
While Wall Street piles into AI darlings, Michael Burry is quietly loading up on call options in three stocks the market left for dead, and his biggest bets carry a very specific thesis about where the crowd got it wrong.
Michael Burry, the Scion Asset Management founder made famous by The Big Short, has rotated hard into three names Wall Street left for dead. According to a portfolio breakdown circulating this week, his largest position is UNH calls at 18.88%, followed by REGN calls at 18.16% and LULU calls at 16.43%. Nine of ten disclosed positions are call options, giving him leveraged upside on the dip with defined downside. Notably absent: the mega-cap AI trade.
Burry’s pitch, as summarized in the disclosure, is that UnitedHealth, Lululemon, Estee Lauder, and JD.com are all names that got destroyed, and he is betting they snap back hard. Here is what the fundamentals say about the three healthcare and consumer bets he sized largest.
UnitedHealth: Margin Recovery Already Underway UnitedHealth Group (NYSE:UNH | UNH Price Prediction) trades at $394.34, up 21.06% year to date but still languishing after a brutal 2025. The Q2 2026 report gave Burry’s thesis teeth. Adjusted EPS came in at $6.38 on revenue of $112.03B, and consolidated operating earnings jumped to $7.99B from $5.15B a year earlier, a 55% increase. The medical care ratio improved to 86.7% from 89.4%, aided by $860M in favorable prior-period reserve development.
Management raised full-year adjusted EPS guidance to $19.50 to $20.00 and doubled the 2026 buyback commitment to at least $5B. CFO Dan Keeter framed the setup on the call: “I see 26 as a delay to that margin recovery trajectory not a setback.” Consensus for fiscal 2027 EPS has climbed to $22.44, putting the stock at roughly 18 times forward earnings. See the Q2 8-K for the raw release.
Regeneron: Dupixent Offsets EYLEA Erosion Regeneron Pharmaceuticals (NASDAQ:REGN) has been the quiet winner of the three, up 47.74% over the past year to $833.83. Q2 was a blowout: non-GAAP EPS of $14.29 versus the $8.00 consensus, a 78.62% surprise, and revenue up 16.7% to $4.29B. Dupixent, partnered with Sanofi, hit $6 billion in global net sales, up 38% year over year, with more than 1.5 million patients actively treated worldwide.
EYLEA HD U.S. sales grew 52% to $962.6M, cushioning the biosimilar-driven 45% decline in legacy EYLEA. Crucially, Regeneron fully repaid the Sanofi development balance at the end of Q2, which management said will produce a meaningful step-up in collaboration profits from Q3 onward. That is the fundamental catalyst behind Burry’s call bet.
Lululemon: Deep-Value Bet on a Broken Brand Lululemon Athletica (NASDAQ:LULU) is the most controversial position, down 52.07% year to date to $99.60. Q2 fiscal 2027, reported September 3, showed why. Revenue fell to $2.42B, down 4.3% YoY, with comparable sales down 9% globally and Americas comps down 12%. Women’s leggings sales declined approximately 20% in Q2. Management cut full-year 2026 revenue guidance to $10.35B to $10.50B and EPS to $9.48 to $9.73.
Burry’s contrarian read, per the summary: Lululemon has substantial cash and almost no debt, historically high returns on capital, and tangible value that has grown even as the stock collapsed. He has reportedly called LULU “screaming cheap” and kept adding despite the pain. Incoming CEO Heidi O’Neill joined the week after the Q2 report, and the company repurchased 2.7 million shares for $330M in Q2. Our earlier take on the setup is here.
What to Watch Next Burry’s structure matters as much as his picks. Calls decay, so timing is everything. UnitedHealth’s Q3 earnings report on Medicare cost trends, Regeneron’s November 2026 FDA decision on simdesiran, and Lululemon’s holiday comps under new leadership are the three catalysts that will decide whether Burry’s short-dated bets pay or expire worthless. For investors, the value is in noting where a well-known contrarian sees mispriced risk while the crowd chases GPUs (we studied a batch of recent runners most investors ignored and turned the pattern into a free report on the winners you already missed).
Contact [email protected] for any questions or corrections.
Lululemon po výsledcích za 2. čtvrtletí znovu snížil celoroční výhled a akcie v následující seanci spadly o 17 %. Tržby klesly o 4 % na 2,42 miliardy USD a upravený EPS se propadl o 34 % na 2,01 USD.
Ahead of Lululemon's (LULU -17.38%) fiscal Q2 earnings report, I wrote an article published on Aug. 26 that said the stock looked like a value trap and that the warning from Dick's Sporting Goods would likely spill over and impact it as well. The stock subsequently plunged 17% on Sept. 4, in the session following its earnings report, as the athleisure company reported disappointing results and cut its full-year outlook. The stock has now lost more than half its value this year and nearly three-quarters of its value over the past five years.
Let's dive into the yoga brand's latest results and prospects to see what could come next for the once-high-flying apparel stock.
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Troubles continue Unfortunately for Lululemon, cutting guidance has become commonplace. For the fourth time since last June, it slashed its full-year outlook. It now expects revenue to decline by 7% to 5% to between $10.35 billion and $10.5 billion, down from prior expectations for sales in a range of $11 billion to $11.15 billion. Full-year adjusted EPS is projected to be between $9.48 and $9.73, but that includes a $0.86 tariff refund. Earlier, it guided to adjusted EPS of $10.95 to $11.15 without a tariff refund.
The company's Q2 results were pretty dreadful, and it looks like things are only worsening. Management noted everything from negative social media commentary to weak responses to new product launches to increased competition and brand deterioration.
Overall, the company's Q2 revenue fell 4% year over year to $2.42 billion, missing the $2.46 billion consensus estimate. Adjusted earnings per share (EPS) plunged 34% to $2.01, but were above the $1.79 consensus.
The underlying numbers were even worse. Americas revenue sank 8%, while same-store sales plunged 12%. International revenue rose 4%, but only 2% in constant currencies, while comparable sales in constant currencies slipped 6%.
China had long been a bright spot for Lululemon, but revenue fell 2% in constant currencies while same-store sales dropped 8% excluding foreign currency movements. The company said it was impacted by negative brand sentiment, which shouldn't be surprising given its big PR gaffe in China when, at an important yoga event held on the Great Wall, it inadvertently gave a Chinese actor a Japanese taiko drum to play instead of a Chinese dagu drum. Rest-of-world sales rose 6% in constant currencies, but comparable-store sales on the same basis dropped 6%.
Gross margin decreased by 200 basis points to 60.5%, but it would have been down 360 basis points when excluding the tariff refund.
Inventory was basically flat year over year, and it is doing a decent job of keeping this in check. This is an important metric to monitor for struggling brands, as big increases above sales growth can lead to more markdowns and sales.
Looking ahead, things will start getting worse for the company just as its new CEO takes over. While it is not uncommon to set a low bar when a new CEO or CFO comes on board, the company still projected a pretty meaningful sales decline. It expects Q3 revenue to decline by 10% to 11% to between $2.290 billion and $2.320 billion. Adjusted EPS is expected to fall to between $0.93 and $0.98 for the quarter, versus $2.59 a year ago.
Image source: The Motley Fool
Is the stock a buy on the dip? While Lululemon stock looks cheap, now trading at a forward price-to-earnings (P/E) ratio of around 9 times this year's and next year's analyst estimates, the stock looks like it is set to fall into the same trap as other once very popular athletic apparel brands like Nike and Under Armour. The brand has lost its luster and faces increased competition, and, quite frankly, from my viewpoint, the athleisure fashion trend is shifting. I was recently eating lunch at Panera, and nearly everyone was wearing jeans. That is not something you would have seen a few years ago.
As such, this is a stock I'd still stay far away from, and it will likely take at least several years for a potential turnaround.
Lululemon podruhé snížil celoroční výhled, což poslalo akcie v premarketu dolů asi o 18 %. Firma zároveň čelí tlaku na marže, slabší poptávce a ztrátě podílu na trhu.
Shares of Lululemon Athletica (LULU.O) fell about 18% in premarket trading on Friday after the sportswear maker cut its full-year forecast for a second time, underscoring the string of challenges that await incoming CEO Heidi O'Neill.
Known for its high-priced stretchy pants and athletic tops, Lululemon has struggled to contain shrinking margins, worsening brand perception and market-share loss to new rivals. O'Neill, who takes over on September 8, will have to chart a recovery for a company hit by merchandising missteps, an over-reliance on promotions and intensifying competition.
The firm's shares were trading at about $99 before the bell, and if losses hold, Lululemon would lose more than $2.5 billion in market value, deepening the stock's year-to-date decline to about 41.5%.
"In our view, last night's decidedly downbeat quarterly announcement is now apt to unnerve meaningfully even longer-term-oriented investors examining the name," said Brian Nagel, analyst at Oppenheimer Research, in a note.
Investors should await an initial game plan from O'Neill before considering a more constructive stance on shares, he added.
O'Neill, a former Nike executive, will be tasked with reviving demand in North America, Lululemon's largest market, and restoring growth.
Revenue in the Americas fell 8% from a year earlier in the second quarter, compared with a 1% increase the previous year, as the firm struggled to reignite demand amid slow consumer spending impacted by inflationary pressures.
Sales could deteriorate further in the second half, Morgan Stanley said, with limited visibility on when demand might recover, raising the risk of continued pressure on margins.
Following the results, at least 12 brokerages lowered their price objectives for the shares, with Piper Sandler setting the Street-low target of $80, according to data compiled by LSEG.
Lululemon's shares trade at about 11.50 times forward earnings, compared with 20.76 for peers Nike (NKE.N) and 13.41 for Adidas (ADSGn.DE).
lululemon athletica inc. uspořádala konferenční hovor k výsledkům za 2. čtvrtletí 2026. V úvodu zaznělo pouze upozornění na výhledová prohlášení a rizika s nimi spojená.
lululemon athletica inc. (LULU) Q2 2026 Earnings Call September 3, 2026 4:30 PM EDT
Company Participants
Howard Tubin - Vice President of Investor Relations
Meghan Frank - Interim Co-CEO & CFO
Andre Maestrini - Interim Co-CEO, President & Chief Commercial Officer
Conference Call Participants
Alexandra Straton - Morgan Stanley, Research Division
Irwin Boruchow - Wells Fargo Securities, LLC, Research Division
Matthew Boss - JPMorgan Chase & Co, Research Division
Lorraine Maikis - BofA Securities, Research Division
Michael Binetti - Evercore ISI Institutional Equities, Research Division
Paul Lejuez - Citigroup Inc., Research Division
Adrienne Yih-Tennant - Barclays Bank PLC, Research Division
Dana Telsey - Telsey Advisory Group LLC
Mark Altschwager - Robert W. Baird & Co. Incorporated, Research Division
Presentation
Operator
Thank you for standing by. This is the conference operator. Welcome to the lululemon athletica inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions]
I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations for lululemon athletica. Please go ahead.
Howard Tubin
Vice President of Investor Relations
Thank you, and good afternoon. Welcome to lululemon's second quarter earnings conference call. Joining me today are Meghan Frank, Interim Co-CEO and CFO; and Andre Maestrini, interim Co-CEO, President and Chief Commercial Officer.
Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of lululemon's future. These statements are based on current information, which we have assessed, but by which its nature is dynamic and subject to rapid and even abrupt changes. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC including our annual report on Form 10-K
Live 5 updates · Last at 4:54pm ET Updates appear automatically.
By Thomas Richmond · Updated Sep 3, 4:54pm ET · Published Sep 3, 3:17pm ET
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That wraps up our initial coverage of Lululemon’s Q2 results. Thank you for stopping by!
Lululemon just reported earnings, with shares initially down 15% following the report. Here are the key numbers:
Revenue: $2.416B vs. $2.46B expected Adjusted EPS: $2.92 vs. $1.80 expected Quick Read:
Lululemon delivered a massive EPS beat, but revenue missed expectations as sales fell 4% year over year.
The 15% sell-off despite the earnings beat suggests investors are far more concerned about weakening sales and the company’s turnaround trajectory than near-term profitability.
Consensus sits at , but the full-year framework matters more. Management already reset the full-year 2026 outlook to , down from .
Lululemon Athletica (NASDAQ:LULU) has historically guided conservatively, excluding tariff impacts from headline numbers.
Bullish vs Bearish Scenarios Bullish guidance would hold North America to the high-single-digit annual decline, sustain approximately 20% China growth, and flag tariff mitigation. Investors also want stability on the operating margin compression.
A bearish outcome would be another EPS cut below , deeper Americas comp erosion, or wider markdowns.
With shares already down , guidance dictates whether incoming CEO Heidi O’Neill inherits a stock ready to rebound or a falling knife.
Bull Case: Why a Beat Could Reset the Narrative China and international momentum: Q1 FY2026 China mainland revenue rose , with full-year China guidance intact at growth. Low expectations: Consensus EPS sits at just after downward revisions in 30 days, and shares trade at a P/E. Crowd conviction: Polymarket puts beat odds at , and insiders are net . Bear Case: Why Confidence May Stay Broken North America still deteriorating: Q2 guidance calls for U.S. revenue to decline in the . Margin collapse: Q2 gross margin is guided down ; operating margin drops to . Post-beat selling pattern: Beats averaged a earnings-day reaction. YTD damage: Shares are down YTD, leaving little room for a guidance cut before Heidi O’Neill arrives.
Lululemon is expected to report earnings at 4:05 PM ET, and the biggest question is whether its struggling North American business is stabilizing.
Management previously guided to low-double-digit declines in North American full-price sales, while tariffs and markdowns are expected to pressure gross margin by roughly 410 basis points this quarter.
The report also comes during a major leadership transition. Interim co-CEOs are preparing to hand control to incoming CEO Heidi O’Neill this month, putting even more attention on management’s outlook and commentary.
Lululemon now trades around 10 times earnings, reflecting how far investor confidence has fallen. An earnings beat paired with signs of stabilization in North America could begin resetting the narrative. Another guidance cut would deepen the company’s credibility problem heading into its new CEO era.
This article is updated throughout the trading day. Check back for more.
Full CoverageThe story so far
Lululemon (NASDAQ:LULU | LULU Price Prediction) is expected to report fiscal Q2 results after the bell today at 4:05 PM ET. Shares are down about 40% year to date, leading Michael Burry to call the stock “screaming cheap.”
Sentiment Meets Margin Reset Last quarter, the athletic-apparel maker posted revenue of $2.5 billion with comparable sales down 2% and diluted EPS of $1.69 versus $2.60 a year earlier. Gross margin contracted to 54.2% from 58.3%, and operating margin dropped to 11.2% from 18.5%, pressured by tariffs and fixed-cost deleverage.
Management cited “spikes of negative commentary in the media and on social channels” and product launches that underdelivered. Traffic softened over the last 6-7 weeks of the quarter. Shares fell 8.56% on the reaction, extending a rout that has pulled the stock 40.03% lower over one year.
Consensus Estimates Metric Q2’26 Estimate YoY Change FY26 Estimate FY27 Estimate Revenue $2.46B -2.6% $11.04B $11.34B EPS (Normalized) $1.7902 -42.3% $11.03 $11.46 The consensus sits inside management’s own Q2 range of $1.76 to $1.81, so the bar is set at the guide. Analyst EPS estimates for the full year have been cut from $12.30 ninety days ago to $11.03. That reset reframes any beat as damage control rather than momentum.
What I’m Watching Tonight Tonight, I’ll be watching how management frames the North America trajectory. Management guided the region to a low double-digit revenue decline in Q2 and expects markdowns to peak this quarter before improving sequentially.
Investors are also going to focus on the company’s gross margin. Tariffs alone carry a 150 basis point gross negative impact this quarter, with 100 basis points of offsets. The company is modeling a 20% back-half incremental tariff rate, and any shift there flows straight to the FY EPS range.
Mainland China is another pillar. Management guided to mid-to-high teens growth in Q2 and roughly 20% for the year, with activations including the Great Wall Yoga Experience. Sustainability of this trend after April’s brand disruption will define the international thesis.
I’ll also watch inventory. Q1 dollar inventory grew 2% while units fell roughly 4%. Cleaner units support the promised markdown moderation. Finally, analysts will listen for the tone on the new CEO Heidi O’Neill appointment and any early strategic direction.
Earnings History Quarter EPS Surprise 1-Day Move 7-Day Move 30-Day Move Q1 27 n/a -8.56% +3.97% +2.00% Q4 26 +4.8% -0.40% +1.05% +5.03% Q3 26 +17.27% +9.60% +2.19% +0.02% Q2 26 +8.74% -18.58% -4.73% +3.20% On average, shares moved -2.9% seven days after earnings across the past six reports.
Contact [email protected] for any questions or corrections.
Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
It hasn't been an easy year for the luxury apparel company Lululemon (LULU +0.88%). The stock is down nearly 42% this year, largely due to weakness in North American sales and management's trimming of full-year guidance earlier this year.
The stock now trades at a cheap 11 times forward earnings. But just because a stock looks cheap, that doesn't mean it can't get cheaper, especially in the near term when sentiment is poor.
The company faces a critical earnings report on Thursday, Sept. 3, when it reports its 2026 fiscal year second-quarter earnings results after the market closes. Management will also host a live conference call with analysts.
While it's incredibly difficult to predict how a stock will move in response to a near-term event, Lululemon's next earnings report could send the stock plummeting. Here's why.
Image source: The Motley Fool.
Management could cut guidance againIn the first quarter, Lululemon slashed its full-year guidance, reducing annual revenue growth projections from 2% to 4% to flat or down 1%.
Management attributed the declining guidance to negative press, which hurt sales in the U.S. and China.
In June, Lululemon issued a public apology after a promotional event on the Great Wall of China, where it accidentally used a Japanese instrument while intending to promote Chinese culture.
There has also been a perception that the brand is not innovating enough and that its clothing line is stale.
Since then, analysts have speculated whether the company may have to take down guidance again, given that the guidance still implies improvement in the back half of the year relative to second-quarter trends.
There's been more concern since Dick's Sporting Goods recently reported earnings and lowered guidance due to sectorwide challenges, noting that it increased promotions amid competition.
Dick's doesn't carry Lulu apparel, but that doesn't mean it can't be indicative of broader industry trends.
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Last week, Goldman Sachs analyst Brooke Roach reiterated a neutral rating on the stock and lowered its price target by $11 to $111 per share.
Roach noted persistent pressure on demand, weak consumer sentiment, increased promotions, and potential slowing growth in China.
Why the stock could plummetObviously, if management lowers guidance again, investors will lose a lot of confidence in the stock in the near term, meaning the company will need to show tangible progress in reversing revenue and earnings trends.
However, as I'd like to reiterate from above, predicting a stock's movement based on a near-term event is extremely difficult.
It's possible that sentiment is already so poor that even a bad earnings report that comes in just a little better than expected is enough to rejuvenate investor interest.
Lululemon still has a decent long-term investment case. The company has built a loyal customer base, as demonstrated by gross margins above 54% in its latest quarter.
Yes, that's down from over 58% a year ago, but still very strong overall. Lulu also has a new CEO starting on Sept. 8. Improved industrywide sentiment and some newer product lines that excite customers could turn the stock around.
But in the near term, it's hard for me to view the stock favorably heading into earnings, given industrywide trends and the company's recent struggles.
Algert Global LLC boosted its holdings in lululemon athletica inc. (NASDAQ:LULU – Free Report) by 2,844.4% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 54,471 shares of the apparel retailer’s stock after acquiring an additional 52,621 shares during the quarter. Algert Global LLC’s holdings in lululemon athletica were worth $6,219,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also made changes to their positions in LULU. Uniplan Investment Counsel Inc. bought a new stake in shares of lululemon athletica during the 4th quarter worth $26,000. Elyxium Wealth LLC purchased a new stake in shares of lululemon athletica during the fourth quarter worth $31,000. Rexford Capital Inc. acquired a new stake in shares of lululemon athletica during the 1st quarter valued at about $31,000. DV Equities LLC acquired a new position in shares of lululemon athletica during the 4th quarter worth $31,000. Finally, Gould Capital LLC bought a new position in lululemon athletica during the first quarter valued at about $32,000. 85.20% of the stock is currently owned by institutional investors.
Insider Transactions at lululemon athletica In other lululemon athletica news, Director Charles V. Bergh purchased 4,275 shares of the company’s stock in a transaction on Monday, June 15th. The shares were purchased at an average cost of $117.05 per share, with a total value of $500,388.75. Following the completion of the purchase, the director owned 10,365 shares in the company, valued at $1,213,223.25. This represents a 70.20% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.54% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades LULU has been the topic of several recent analyst reports. Barclays dropped their target price on shares of lululemon athletica from $161.00 to $113.00 and set an “equal weight” rating on the stock in a report on Friday, June 5th. Telsey Advisory Group dropped their price target on shares of lululemon athletica from $175.00 to $122.00 and set a “market perform” rating for the company in a research report on Friday, June 5th. Wells Fargo & Company lowered their target price on shares of lululemon athletica from $110.00 to $105.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 21st. Citigroup dropped their price target on lululemon athletica from $185.00 to $130.00 and set a “neutral” rating for the company in a report on Tuesday, June 9th. Finally, Jefferies Financial Group reduced their target price on shares of lululemon athletica from $145.00 to $115.00 and set a “hold” rating on the stock in a research report on Friday, June 5th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-five have issued a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, lululemon athletica currently has a consensus rating of “Reduce” and a consensus target price of $148.38. Get Our Latest Stock Report on LULU
lululemon athletica Price Performance lululemon athletica stock opened at $116.35 on Thursday. The company’s 50-day moving average is $117.70 and its 200-day moving average is $138.97. The firm has a market capitalization of $13.81 billion, a PE ratio of 9.39, a P/E/G ratio of 3.88 and a beta of 0.86. lululemon athletica inc. has a fifty-two week low of $104.44 and a fifty-two week high of $225.98.
lululemon athletica (NASDAQ:LULU – Get Free Report) last issued its quarterly earnings data on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $1.67 by $0.02. The firm had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.44 billion. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.The company’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same period in the prior year, the firm posted $2.60 EPS. lululemon athletica has set its FY 2026 guidance at 10.950-11.150 EPS and its Q2 2026 guidance at 1.760-1.810 EPS. As a group, analysts expect that lululemon athletica inc. will post 10.93 EPS for the current year.
lululemon athletica News Roundup Here are the key news stories impacting lululemon athletica this week:
Positive Sentiment: UBS expects Lululemon to potentially exceed second-quarter earnings expectations, supported by cost controls and share repurchases. The company is scheduled to report results on September 3. Lululemon Athletica Set to Top Second Quarter Earnings Expectations on Cost Control, Share Repurchases, UBS Says Positive Sentiment: Recent analyst commentary suggests LULU could benefit from disciplined expense management and buybacks even if revenue growth remains subdued. The company’s latest reported quarter also exceeded consensus estimates for revenue and earnings. Analysts Have Conflicting Sentiments on These Consumer Cyclical Companies Neutral Sentiment: Analyst sentiment is mixed ahead of the earnings release. UBS maintains a neutral view, while other coverage is focused on whether Lululemon can stabilize growth in its largest markets. Should You Buy Lululemon Stock Before Sept. 3? Negative Sentiment: UBS warned that Lululemon may reduce its fiscal 2026 earnings outlook because of weaker-than-expected sales in the U.S. and China. The firm reportedly expects a reduction of approximately $1.25 per share, raising concerns about the company’s longer-term growth trajectory. Lululemon May Cut Annual Earnings Outlook Amid Weak US, China Sales, Warns UBS Negative Sentiment: UBS lowered its LULU price target from $124 to $120 and kept a neutral rating, reflecting limited expected upside and persistent demand concerns. UBS Lowers Lululemon Price Target lululemon athletica Profile (Free Report)
lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.
Products are developed in-house and produced through a network of third-party manufacturers.
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lululemon čeká za 2. čtvrtletí fiskálního roku 2026 pokles zisku i tržeb, přičemž tržby mají činit 2,45–2,475 mld. USD. Tlak vytváří slabší Severní Amerika, vyšší markdowny a cla.
Key Takeaways lululemon is expected to see Q2'26 earnings decline, with revenues estimated at $2.5B.Power of Three X2 strategy supports product innovation, guest experience and international expansion.North America softness, higher markdowns, tariffs and SG&A costs are pressuring margins in Q2. lululemon athletica inc. (LULU - Free Report) is likely to witness top- and bottom-line declines when it reports second-quarter fiscal 2026 results on Sept. 3, after market close. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $2.5 billion, indicating 2.3% growth from the year-ago quarter's reported figure.
The consensus estimate for the company's fiscal second-quarter earnings is pegged at $1.79 per share, suggesting a 42.3% decline from the year-ago quarter’s actual. Earnings estimates have been unchanged in the past 30 days.
The Vancouver-based company has been reporting steady earnings outcomes, as evident from its bottom-line surprise trends in the past several quarters. lululemon has a trailing four-quarter earnings surprise of 8.1%, on average. Given its positive record, the question is, can LULU maintain the momentum?
Earnings WhispersOur proven model does not conclusively predict an earnings beat for LULU this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
lululemon has an Earnings ESP of 0.00% and a Zacks Rank #3.
Key Insights on Trends to Define LULU’s Q2 Resultslululemon continues to benefit from the progress in its Power of Three X2 growth strategy. The plan focuses on three key growth drivers — product innovation, guest experience and market expansion. LULU is expected to deliver solid revenue growth in the fiscal second quarter through product innovation, enhanced guest experience and aggressive international expansion under the plan.
International markets, led by Mainland China, have been posting outsized growth, while the men’s category has been gaining share. Digital investments have been strengthening the omnichannel ecosystem and disciplined store expansion has been supporting brand visibility. On the last reported quarter’s earnings call, the company noted that trends in Mainland China have been strong in the second quarter of fiscal 2026.
For second-quarter fiscal 2026, management guided China Mainland to see mid- to high-teens growth and Rest of World to record high-single to low-double-digit growth. This keeps international expansion as the primary offset to a weaker Americas demand backdrop. Our model anticipates revenues in China Mainland to increase 19.5% and Rest of World to grow 14.6% in second-quarter fiscal 2026.
However, LULU faces near-term pressure from soft North America demand and significant margin contraction. Higher markdowns, tariff-related costs and elevated SG&A expenses weighed on profitability, while cautious guidance signals slower growth and continued operating margin pressure.
North America, lululemon’s largest and most mature market, has been witnessing softness due to uneven traffic trends and increasingly cautious consumer spending, particularly in discretionary categories. The impact has been most visible in the women’s category, a core driver of the brand’s North American business. Slower momentum in North America limits consolidated growth and raises concerns about market saturation. Increased promotional activity across the broader apparel space has also intensified competition, making it harder to drive full-price sales. Until demand stabilizes and traffic improves, North America is likely to remain a drag on near-term revenue growth.
On the last reported quarter’s earnings call, management cited a recent moderation in sales trends tied to spikes of negative brand commentary and product launches that have not met expectations, and noted it is moving with urgency to adjust product and increase marketing and community activations.
Management’s near-term outlook points to a tougher demand and margin setup in the fiscal second quarter. Management reduced its outlook after sales trends moderated exiting first-quarter fiscal 2026. For second-quarter fiscal 2026, it expects revenues of $2.45-$2.475 billion, suggesting a 2-3% fall, and EPS of $1.76-$1.81, whereas it registered EPS of $3.10 in the year-ago quarter.
lululemon’s margins are expected to remain under pressure in the to-be-reported quarter due to higher product costs, increased markdowns, unfavorable channel mix and tariff pressures. For second-quarter fiscal 2026, management expects the gross margin to move down 410 bps, led by higher tariff costs and ongoing investments in store openings, optimizations and the distribution network. Tariffs are expected to be a 150-bps headwind, with offsets of 100 bps. Meanwhile, markdowns are likely to rise 50 bps due to additional seasonal clearance.
For second-quarter fiscal 2026, management expects SG&A deleverage of 500 bps, driven by lower sales versus prior expectations, proxy costs, increased marketing and the reintroduction of expenses reduced last year, including store labor hours. LULU expects the second-quarter fiscal 2026 operating margin to contract 910 bps year over year to 11.6%.
LULU’s Price Performance & Valuationlululemon’s shares have exhibited a downtrend in the past three months, losing 11.4% against the industry’s growth of 2.2%. The company has also underperformed the Zacks Consumer Discretionary sector and the S&P 500’s growth of 2% and 0.5%, respectively.
lululemon’s 3-Month Performance
Image Source: Zacks Investment Research
From the valuation standpoint, the company trades at a forward 12-month P/E multiple of 10.33X, below the industry average of 15.05X.
Image Source: Zacks Investment Research
Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:
Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.
Macy's Inc. (M - Free Report) currently has an Earnings ESP of +20.81% and a Zacks Rank of 2. The company is likely to register growth in the top line when it reports second-quarter fiscal 2026 results. The consensus mark for M’s quarterly revenues is pegged at $4.8 billion, which indicates a 0.2% rise from the figure reported in the prior-year quarter.
The consensus mark for Macy's quarterly earnings has moved up 5.7% in the past 30 days to 37 cents per share. However, the consensus estimate indicates a decline of 9.8% from the year-ago quarter’s actual. M has an average trailing four-quarter earnings surprise of 211%.
NIKE Inc. (NKE - Free Report) currently has an Earnings ESP of +0.55% and a Zacks Rank of 3. NIKE is likely to register top- and bottom-line declines when it reports first-quarter fiscal 2027 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $11.5 billion, which indicates a 2.2% decline from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up by a penny in the past 30 days to 44 cents per share, which implies a 10.2% decline from the year-ago quarter's actual. NKE has an average trailing four-quarter earnings surprise of 56.8%.
Lululemon očekává za fiskální 2026 2. čtvrtletí tržby 2,450 až 2,475 miliardy USD, tedy pokles o 2 % až 3 %. Zisk na akcii má činit 1,76 až 1,81 USD, výrazně pod 3,10 USD před rokem.
It's time for Lululemon Athletica (LULU +4.65%) to show us if its financial results can stretch as well as some of its signature yoga gear and fitness apparel. Lululemon reports its 2026 fiscal second-quarter results after the market close on Sept. 3.
Expectations are low, and understandably so for a stock that has been cut nearly in half from its December high. Lululemon's own guidance from early June calls for $2.450 billion to $2.475 billion in revenue, a 2% to 3% decline. Its per-share profit forecast of $1.76 to $1.81 for the quarter is well below the $3.10 it posted for the same quarter last summer.
Image source: Getty Images.
It's a downward-facing dog Investors of the struggling retail stock could use a break. After five fiscal quarters of uninspiring single-digit revenue growth, Lululemon is bracing investors for only its second quarterly decline since going public 19 years ago. The only other time this happened was the first quarter of the COVID-19 shutdown.
Bulls will argue that Lululemon is cheap, trading for just 9 times trailing earnings. However, that's a flimsy argument when the bottom line has declined for five consecutive quarters. The chain's guidance predicts that the streak will extend to six reports in two weeks. Lululemon's forward earnings multiple is just above 10 right now.
Today's Change
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Hoping for a cobra pose The good news is that the pessimism is already baked into today's share price. Lululemon has lost a lot of key hires -- including its chief AI and technology officer last week, bolting after less than a year at the retailer -- but that also results in fresh thinking.
There is change coming, even at the top. Former Nike executive Heidi O'Neill will begin leading the company on Sept. 8, a few days after its fiscal second-quarter update. She won't have to return to Lululemon's heady days of growth to make the stock a market beater again. Simply reversing the negative sales and earnings trends could be enough. Namaste.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
Lululemon letos klesl o 44 % a tržby v 1. čtvrtletí vzrostly jen o 4 % na 2,5 miliardy USD, zatímco čistý zisk spadl na 195 milionů USD. Akcie se podle technického obrazu mohou dál propadat k 100 USD.
Sell LULU. Fundamentals are rolling over (revenue growth from ~30% to ~5%, Americas down, China slowing, net income down). Even with a lower forward P/E (~10.5), the article flags “value trap” risk. Chart confirms bear control: below $159 support, below 50-week EMA, bearish flag into a horizontal channel—setup for a breakdown toward $100 and then $80.
Key Risk: Lululemon proves a real turnaround fast (clear guidance re-accelerating growth and margins), causing the stock to reclaim $159 and invalidate the breakdown path.
Nike (NKE) short
Sell NKE as a high-conviction peer trade. The article shows the whole industry is in a synchronized drawdown (Nike down ~50% in 12 months, ~77% in 5 years). If Lululemon is struggling with demand and profitability, Nike’s brand-led demand and inventory cycle risk likely keeps pressure on the group, especially if consumers keep trading down.
Key Risk: Nike delivers a sharp demand/inventory correction with strong forward guidance that lifts the whole discretionary apparel complex and forces multiple expansion.
Lululemon stock continues to underperform the broader market as the company’s and industry’s challenges continue. LULU is down by 44% this year and by 71% in the last five years, a dramatic reversal for a company that was once one of the most popular among retail and institutional investors.
LULU’s retreat has coincided with that of other top companies in the industry. Nike stock has dropped by 50% in the last 12 months and by 77% in the last five. In Germany, Adidas has fallen by 50% in the last five years, while On Holding is down by 33% in the same period.
Lululemon, a company whose business boomed during the pandemic, has done well in the past few years as its growth trajectory has stalled.
It has moved from having double-digit growth to single digits. In 2023, the company’s revenue growth was nearly 30%, a figure that dropped to 4.8% last year.
The most recent results showed that its net revenue rose by just 4% in the first quarter to $2.5 billion or 2% on a constant-dollar basis.
Most notably, its key markets are no longer doing well. Its Americas revenue dropped by 3%, a notable development since it is its most profitable.
Its international segment’s revenue jumped by 22% in the quarter, with its comparable sales rising by 13%. While these growth metrics are good, they are much lower than where they were a few quarters ago. Mainland China’s revenue has also slowed drastically in the past few months.
The company’s profits have also plunged. Its net income dropped to $195 million in the first quarter from $314 million in the same period last year.
Lululemon’s growth is expected to be minimal in the coming years. The average estimate among analysts is that its second-quarter revenue will be $2.46 billion, down by 2.55% from a year earlier. For the year, its revenue is expected to drop by 0.54% to $11.04 billion, followed by a modest growth next year to $11.34 billion.
Therefore, the company’s valuation has become a bargain. Its forward price-to-earnings ratio dropped to 10.5, lower than the consumer discretionary median of 17, and the five-year average of 28. Despite its cheap valuation, there is a possibility that it may be a value trap. Unless the company demonstrates a clear turnaround strategy, the stock will likely continue falling.
LULU stock chart | Source: TradingView
The weekly chart shows that the LULU stock has been in a strong sell-off for a while. It has slumped below the important support level of $159, its lowest level in September and November last year.
Lululemon stock has slumped below the 50-week Exponential Moving Average (EMA), a sign that bears remain in control. The stock has formed a bearish flag pattern and is now in the horizontal channel.
Therefore, the stock will likely continue falling, potentially to the key support level of $100. A move below that support will point to further downside towards $80.
Lululemon v poslední seanci vzrostl o 2,36 % na 119,26 USD a překonal růst indexu S&P 500 o 0,42 %. Trh očekává výsledky, u nichž se odhaduje EPS 1,79 USD a tržby 2,47 mld. USD.
Lululemon (LULU - Free Report) closed at $119.26 in the latest trading session, marking a +2.36% move from the prior day. This change outpaced the S&P 500's 0.42% gain on the day. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.37% lagged the Consumer Discretionary sector's gain of 0.02% and the S&P 500's gain of 2.2%.
Investors will be eagerly watching for the performance of Lululemon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.79, marking a 42.26% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.47 billion, reflecting a 2.26% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.08 per share and a revenue of $11.08 billion, signifying shifts of -16.44% and -0.22%, respectively, from the last year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.51% lower. Currently, Lululemon is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 10.52. This expresses a discount compared to the average Forward P/E of 15.73 of its industry.
Also, we should mention that LULU has a PEG ratio of 3.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 2.14 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Lululemon čelí další ráně důvěry po kritice za kulturní necitlivost v Číně. Firma už dříve varovala před poklesem čistých tržeb o 2 % až 3 % ve druhém čtvrtletí.
SHENYANG, CHINA - JUNE 13: Hundreds of yoga enthusiasts practice yoga at the Sun Square of Shenyang Grand Theatre on June 13, 2026 in Shenyang, Liaoning Province of China. (Photo by Cai Jingyu/VCG via Getty Images)
VCG via Getty Images
At a May 30 promotional event on the Great Wall of China, the company featured a giant Japanese taiko drum instead of a culturally appropriate Chinese dagu drum for a musical performance. The misstep immediately sparked backlash for cultural insensitivity and drew over 50 million views on Weibo—other Western brands, including H&M, Dolce & Gabbana, Dior, Burberry, and Gucci, have been caught in similar cultural crosshairs.
It took Lululemon over two weeks to acknowledge the mistake and issue an apology on Weibo, pledging its commitment to honoring Chinese culture—a critical priority for Western brands doing business in China—and accepting responsibility for an inadequate planning and review process.
As global communications firm Edelman said, “Trust is the currency of consumer power,” and another misstep gives loyal customers an excuse to leave the brand and potential customers a reason to look elsewhere—something Lululemon can ill afford now as its business growth slows, leadership is in transition and its stock price is down 50% this year.
Plagued By ControversiesControversies have haunted Lululemon almost from the beginning in 1998 under founder Chip Wilson. He explained that the company name with multiple L’s was originally chosen because it was a letter that Japanese people couldn’t pronounce. “It’s funny to watch them try to say it,” he infamously said.
He later walked it back later by saying the name is “innately North American and authentic” because the letter L does not exist in Japanese phonetics. The Chinese drum controversy recalled those remarks, reinforcing the perception that Lululemon still struggles with cultural awareness.
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Wilson continued to make highly controversial remarks throughout his tenure with the company, which officially ended in 2015. Though as the company’s single largest shareholder, he has persisted in speaking out publicly against leadership’s decisions, most recently in his proxy battle to get his chosen picks on the board.
Back in the day, Wilson defended not offering clothing for plus-sized women because such larger sizes were too expensive to make and he blamed excess pilling in some designs because women were wearing the clothing wrong or had a body shape that wasn’t suitable to its designs.
Beyond such insensitive remarks, the company had a major quality issue in 2013 after widespread complaints emerged that its yoga pants were too sheer. That led to millions of yoga pants being recalled and a reputational crisis for the brand.
Lululemon was hit with further complaints about sheerness in its Align leggings in 2021 and again in 2025. Early this year is got the same complaints for its Get Low leggings, causing the company to temporarily halt online sales. Plus, in 2024, the Breezethrough leggings were pulled for quality issues.
It also was caught making false claims about the health benefits of products made with seaweed-infused fabrics. In 2007, the Canada’s Competition Bureau ruled the company’s claims of anti-inflammatory, detoxifying qualities in its Vitasea product line were unsubstantiated, false and misleading and forced the company to remove all such health benefit claims from its advertising and marketing.
And most recently, in April, the Texas Attorney General Ken Paxton has launched an investigation into Lululemon’s use of PFAS, so-called “forever chemicals” that don’t break down in the environment and may have negative health effects. The company claims it phased out use of the substances in early 2024 and is cooperating with the state. However, it’s one more black eye against the company.
Taken together, these controversies suggest a pattern that Lululemon has never fully put behind it. They invite debate about whether the most recent missteps will quickly fade from memory or if they deepen a persistent trust problem for the brand.
Clouds Of UncertaintyThe general consensus is that the latest China misstep will leave no permanent damage. BNP Paribas analyst Laurent Vasilescu said, “The push back tends to be a short-term headwind.” And RepTrak’s Stephen Hahn noted any reputational damage will remain confined to the local market and have no long-term impact globally. “This story is less likely to drum up any major reputational noise about Lululemon outside of China.”
However, the China drum incident, paired with the Texas AG’s PFAS investigation, reopens the question of whether Lululemon is a brand consumers can trust. It refreshes memories of past controversies and casts the company once again in a negative light.
Notably, during the first-quarter earnings call, the company acknowledged it experienced “spikes of negative commentary” in the media and across social media—including in China where brand momentum slowed after a strong Chinese New Year. And that was before the Great Wall of China fiasco, casting a cloud over second-quarter results, potentially even beyond.
Customer trust is the key metric. Edelman’s global research among 15,000 consumers in 15 countries found 88% rank trust equally important to “ best quality” and “good value for the money” when making a purchase decision. Lululemon is challenged on all counts—quality questions persist, value is threatened amid rising prices and trust shaken by cultural missteps and regulatory scrutiny.
GlobalData retail analyst and managing director Neil Saunders told CBS News earlier this year that Lululemon’s products have become “junkified,” adding, “What it suggests is that there’s kind of a lack of quality control, there’s a lack of care, there’s a lack of attention to detail.”
Reasons To FleeConsumers have a long memory when controversies around a brand’s cultural sensitivity and product quality issues resurface again and again—a memory that shapes how they interpret its latest controversies and could drive them to look elsewhere. And unlike in Lululemon’s early days, the competition is coming on strong.
Privately-held Vuori has reached a market cap of $5.5 billion valuation after a recent investment round. It’s on a path to 100 global stores, including five just opened in China, and an IPO is rumored to be in the works.
Alo Yoga has about 130 stores globally, with plans to open a 7,000-square-foot, two-story Hong Kong waterfront store shortly. Forbes estimates that Alo Yoga’s parent company, Color Image Apparel, has generated nearly $2 billion most recently.
And heavy-hitter Nike entered the premium women’s activewear market in a collaboration with Kim Kardashian’s SKIMS brand last year, with the NikeSKIMS product line expanding globally this year.
The irony is that Lululemon, a brand that once defined the athleisurewear category, opened the door for these and other challengers while being distracted by controversies of its own making.
And hanging over all of this is Chip Wilson’s highly-publicized proxy battle where he was characteristically outspoken about the company’s leadership mistakes and claims that Lululemon has “lost its cool.”
Eroding TrustBefore the China drum backlash, Lululemon was guiding on a net revenue decline between 2%-3% in the second quarter, after squeaking out 4% revenue growth in the first quarter. In the latest earnings call, the company acknowledged headwinds as it entered the second quarter around negative publicity—e.g. Wilson’s critiques and the Texas PSFA investigation—and recent product launches that didn’t “generate anticipated guest response,” such as the alleged see-thru Get Low leggings.
These remarks came before the China controversy, which is likely to hit the company’s sales harder than its earlier guidance suggests. Noting that momentum is slowing in China—comparable sales slipped from 30% in fourth quarter 2025 to 20% in first quarter 2026—BNP Paribas warned, “We are worried that China revenues will flatten out,” as it also expressed concerns about Lululemon’s continued decline in North America—the Americas comparable sales dropped 5% in first quarter. And the firm noted this was before the full impact of the two recent social media controversies are factored into results.
The last thing Lululemon needs now is further erosion of consumer trust and while the particulars of the latest controversies will fade, more general negative feelings about the brand are likely to persist, adding fuel to the competition’s fire.
If trust continues to slip, the question won’t be if Lululemon can regain momentum with new product drops and marketing initiatives, but whether consumers will continue to give the brand the benefit of the doubt.
See Also:
ForbesLululemon Controversy In China Threatens Growth In Key MarketBy Mary Whitfill RoeloffsForbesLululemon Founder Chip Wilson Wins Two Board Seats To End Bitter Proxy BattleBy Pamela N. DanzigerForbesLululemon's Billionaire Founder Has Been Fighting To Oust Its CEO–He Won, But He’s Still Not HappyBy Simone Melvin
Akcionáři Lululemon schválili tři kandidáty vedení do představenstva, čímž pomohli uzavřít vleklý spor se zakladatelem Chipem Wilsonem. Akcie po zprávě vzrostly o více než 3 %.
Lululemon Athletica Inc (NASDAQ:LULU) shares rose more than 3% after shareholders approved three management-backed directors at the company’s June 25 annual general meeting, helping resolve a prolonged proxy dispute with founder Chip Wilson.
The elected directors include former Levi Strauss CEO Chip Bergh, Unilever executive Esi Eggleston Bracey and finance veteran Teri List. Their appointment strengthens the board as the company prepares for incoming CEO Heidi O’Neill, who is set to take over in September.
Lululemon also confirmed that two of Wilson’s nominees, former On co-CEO Marc Maurer and former ESPN chief marketing officer Laura Gentile, have also joined the board as independent directors.
A third mutually agreed director is expected to be added by October 1, expanding the board to 11 members.
The changes follow a settlement reached in May aimed at ending months of public tension between Wilson, who owns about 8.6% of the company, and Lululemon’s leadership.
Under the agreement, Wilson has also committed to an 18-month period of refraining from public criticism of the company.
Lululemon has struggled amid intensifying competition from rivals such as Alo Yoga and Vuori, with the stock down about 50% in the last 12 months.
