Recently, Zacks.com users have been paying close attention to Lululemon (LULU). This makes it worthwhile to examine what the stock has in store.
Lululemon (LULU) faces macro, execution, and regulatory headwinds, but current valuation offers compelling risk-reward for patient investors. LULU's 14x forward PE is notably cheap versus peers, despite solid fundamentals and a three-year revenue CAGR that remains attractive. Execution gaps and tariff impacts have weighed on growth, but management is addressing internal issues and expanding aggressively in China.
For most of 2025, the discussion around Lululemon stock (NASDAQ: LULU) has been focused on a single, concerning question: “Is the athleisure boom coming to an end?” With rivals such as Alo Yoga and Vuori gradually taking away market share in U.S. malls, investors had come to view Lululemon as a brand in long-term decline.
Lululemon Athletica (LULU) is downgraded to Sell following a relief rally driven by the CEO's resignation. Q3 results were buoyed by exceptional China sales. Leadership transition introduces prolonged uncertainty, with meaningful strategic impact unlikely before 2027.
Shares of Lululemon (NASDAQ: LULU) jumped sharply on Friday after the company announced a major leadership change and released a stronger-than-expected quarterly report, renewing optimism about the apparel maker's turnaround prospects.
Rebounding further off its multi-year lows, Lululemon (LULU) stock spiked as much as +14% in Friday's trading session after delivering stronger-than-expected Q3 results.
Lululemon might just be entering a new—and improved—era.
Lululemon Athletica's shares spiked Friday after the company's CEO Calvin McDonald announced his resignation amid declining US sales, with its founder putting the board on notice about a potential proxy battle.
Lululemon CEO Calvin McDonald will step down in the first quarter of 2026 as the athleisure clothing brand faces significant competition challenges.
LULU tops Q3 revenue and EPS estimates on strong international gains, even as margins weaken and Americas results soften.
lululemon athletica inc. is a compelling turnaround play, rated Strong Buy due to discounted valuation and robust international growth. LULU posted Q3 revenue of $2.56B (+6.7% Y/Y) and GAAP EPS of $2.59, beating expectations despite margin pressures from tariffs and discounts. International markets, especially China (sales +46% Y/Y), are driving growth, offsetting weakness in the Americas and supporting a higher long-term growth trajectory.
I upgrade my rating on lululemon athletica after an improvement in sentiment driven by signs of international growth offsetting U.S. headwinds and the CEO departure. After Q3 2025, the Americas segment is still weak: revenue -2% yoy, US -3%, with traffic pulling back post-Thanksgiving, and any improvement possibly is now delayed to Q1 2026. International revenue was up 33% yoy, driven by China Mainland +46%. FY25 China guidance was upgraded to "at or better than" the high end of the 20%–25% range.