Lululemon (LULU) remains a Buy due to its strong brand, loyal customer base, and industry-leading margins despite recent stock declines. LULU faces temporary headwinds: slower North America growth, reduced earnings guidance, and increased competition, but core fundamentals remain intact. International growth in China and Europe is robust, with significant room for further expansion in underpenetrated markets supporting the long-term thesis.
Athleisure clothing brand Lululemon Athletica Inc (NASDAQ:LULU) was last seen up 2.7% to trade at $183.27, after the company inked a deal with the NFL and Fanatics to launch an apparel collection for each of the 32 teams.
LULU's U.S. slowdown and margin pressures test its ability to reignite growth through new product innovation and AI-driven design.
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 is beginning to show signs of maturing growth in the America's and tariff impacts will be an additional headwind, but the 60% pullback has gone too far. lululemon remains an aspirational brand with strong consumer appeal and solid growth in international markets. Current valuation now looks attractive at 11.4x TTM P/E as it reflects a more reasonable pricing of future growth.
Lululemon Athletica Inc NASDAQ: LULU, once the darling of all retail stocks, has endured one of the ugliest downtrends in the industry this year. Its shares are down about 60% from their January peak, and every bullish rally attempt in the nine months since has been beaten back by the bears.
Chip Wilson is publicly attacking management and wants to replace directors through an activist push.
In the closing of the recent trading day, Lululemon (LULU) stood at $164.62, denoting a -1.48% move from the preceding trading day.
Some of the best investment returns can be achieved by owning businesses that are registering impressive revenue and profit growth. In this way, strong fundamental gains can drive share prices higher.
LULU beats Q2 earnings estimates and bets on design innovation and global expansion to sustain its edge in a cooling activewear market.
U.S. comps are negative, inventories are elevated, and tariff/de minimis changes will cut ~$240M from gross profit, weighing heavily on sentiment despite elite ~60% gross margins and a debt-free balance sheet. Heavy reliance on China's growth (25%+ y/y) creates concentration risk in today's policy climate, while U.S. consumers are showing pushback on price, challenging the durability of LULU's pricing power. The stock is oversold with RSI near bottoming levels, and visible supply chain diversification, U.S. fulfillment shifts, and product refresh could re-rate sentiment before earnings recover, offering contrarian upside.
Despite the fact that this company has beat the number in each of the last four quarters, estimates are still falling.