Wolfe Research Initiates Coverage on lululemon athletica (NASDAQ:LULU)

Research analysts at Wolfe Research assumed coverage on shares of lululemon athletica (NASDAQ:LULU) in a report released on Thursday, Briefing.com reports. The firm set an “underperform” rating and a $75.00 price target on the apparel retailer’s stock. Wolfe Research’s target price would suggest a potential downside of 22.30% from the stock’s previous close.

Other analysts also recently issued reports about the company. Robert W. Baird decreased their price objective on lululemon athletica from $140.00 to $115.00 and set a “neutral” rating for the company in a report on Friday, September 4th. Piper Sandler cut their target price on shares of lululemon athletica from $110.00 to $80.00 and set a “neutral” rating on the stock in a research report on Friday, September 4th. Citigroup cut their target price on shares of lululemon athletica from $130.00 to $117.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 9th. Bank of America reduced their price target on shares of lululemon athletica from $140.00 to $122.00 and set a “neutral” rating for the company in a report on Friday, September 4th. Finally, Telsey Advisory Group lowered their price target on shares of lululemon athletica from $122.00 to $110.00 and set a “market perform” rating for the company in a research report on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Hold rating and eight have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $105.26.

lululemon athletica Stock Down 3.4%

Shares of NASDAQ LULU opened at $96.53 on Thursday. The business has a fifty day simple moving average of $104.58 and a two-hundred day simple moving average of $119.84. The firm has a market cap of $11.18 billion, a PE ratio of 8.81, a price-to-earnings-growth ratio of 2.38 and a beta of 0.92. lululemon athletica has a twelve month low of $90.38 and a twelve month high of $225.98.

lululemon athletica (NASDAQ:LULU) last issued its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, topping the consensus estimate of $1.79 by $1.13. lululemon athletica had a return on equity of 27.69% and a net margin of 12.78%. The business had revenue of $2.42 billion during the quarter, compared to analysts’ expectations of $2.46 billion. During the same period in the prior year, the business earned $3.10 EPS. The business’s revenue for the quarter was down 4.3% compared to the same quarter last year. lululemon athletica has set its FY 2026 guidance at 9.480-9.730 EPS and its Q3 2026 guidance at 0.930-0.980 EPS. On average, research analysts expect that lululemon athletica will post 9.55 earnings per share for the current year.

Hedge Funds Weigh In On lululemon athletica

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rexford Capital Inc. bought a new position in lululemon athletica in the first quarter worth about $31,000. Gould Capital LLC bought a new stake in shares of lululemon athletica in the 1st quarter valued at about $32,000. Allied Private Wealth LLC purchased a new position in shares of lululemon athletica in the 2nd quarter worth approximately $34,000. Ancora Advisors LLC purchased a new position in shares of lululemon athletica in the 2nd quarter worth approximately $37,000. Finally, Cassaday & Co Wealth Management LLC purchased a new position in shares of lululemon athletica in the 1st quarter worth approximately $38,000. Hedge funds and other institutional investors own 85.20% of the company’s stock.

Key Stories Impacting lululemon athletica

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: Some investors see a potential turnaround opportunity at a substantially lower valuation. Lululemon has approximately $1.4 billion in cash, no debt, ongoing share buybacks and reported insider buying. New CEO Heidi O’Neill is rebuilding the leadership team and focusing on product innovation and the pipeline, which could help restore growth if execution improves. Lululemon: Don’t Confuse Crisis With Death Lululemon Is Down 54% and Trades at 8.5 Times Earnings
• Neutral Sentiment: Management’s leadership reorganization is intended to improve product development and decision-making, but investors are waiting for evidence that the changes can produce stronger products, better demand and sustainable sales growth. Lululemon Is Reorganizing Its Leadership Team
• Negative Sentiment: The main pressure is a deepening Americas sales slump, including weak leggings demand, failed product launches and customer alienation. Rising competition and a shift among teenagers from athletic apparel toward fashion are adding to concerns about market share and the company’s turnaround prospects. lululemon’s Americas Sales Slump Deepens Turnaround Concerns Teen Spending Up as They Trade Athletic Apparel for Fashion
• Negative Sentiment: Wells Fargo lowered its LULU price target to $90, while other analysts have cut targets after two disappointing quarterly reports. The reduced expectations reinforce concerns over slowing growth, margin compression and the timing of any recovery. Wells Fargo Cuts Target to $90
• Negative Sentiment: Multiple law firms announced investigations into potential securities-law violations following LULU’s sharp decline and disappointing results. These notices may increase headline and litigation risk, although they do not establish wrongdoing. LULU Loss Notice and Securities Fraud Investigation

lululemon athletica Company Profile

lululemon athletica inc. is a Vancouver, British Columbia-based designer, distributor and retailer of technical athletic apparel, footwear and accessories. The company serves consumers seeking products for yoga, running, training, fitness and other active lifestyles.

Its product portfolio includes women’s and men’s apparel, sports bras, leggings, tops, shorts, outerwear, footwear, bags and related accessories. lululemon sells its products through company-operated stores, e-commerce platforms and selected other channels, while also offering community-based fitness and wellness experiences connected to its brand.

Founded in 1998 by Chip Wilson, lululemon has expanded from its roots in yoga apparel into an international athletic and lifestyle brand.