Jefferies analysts lowered their price target on Lululemon Athletica Inc (NASDAQ:LULU) stock to $185 from $200, coinciding with the outgoing CEO Calvin McDonald's final day at the company. Shares of Lululemon traded at about $174 on Friday, down almost 60% in the last 12 months.
Lululemon Athletica (LULU) stock has dropped by 20.1% in under a month, declining from $215.88 on January 6, 2026, to $172.54 currently. Investors are reassessing growth expectations amid a tougher consumer spending backdrop and ongoing margin concerns across the apparel space.
LULU's premium apparel positioning faces a test as U.S. traffic trends remain under pressure and margins tighten, even as international growth stays strong.
The LULU stock looks cheap after a sharp selloff, but soft U.S. demand and margin pressure raise questions on timing a rebound.
Recently, Zacks.com users have been paying close attention to Lululemon (LULU). This makes it worthwhile to examine what the stock has in store.
A LinkedIn tongue-lashing about troubles with a new activewear line is the latest salvo in Chip Wilson's campaign to overhaul the company's board.
Chip Wilson, who has been trying to reshape Lululemon's board, said the company didn't care about product development or quality.
Lululemon's founder, Chip Wilson, had a lot to say about the recall of the sheer "Get Low" leggings. Wilson said the recall was due to the Lululemon board's inexperience and shortsightedness.
Lululemon once was the undisputed consumer favorite in the rapidly growing athleisurewear market. Sporting the Lululemon logo became a status symbol, owing to its performance attributes, fashion-forward styling and premium pricing—leggings start at about $100.
lululemon faces deteriorating fundamentals, with comparable sales and margins declining, contrary to a recent 26% relief rally. LULU trades at 15x low-cycle earnings, offering a potentially attractive risk-reward profile for turnaround investors if fundamentals recover. Competitive pressures and consumer trade-down are eroding LULU's pricing power, with gross margins hitting a three-year low of 55.5%.
Lululemon Athletica Inc (NASDAQ:LULU) has temporarily paused online sales of its new Get Low activewear line after customers raised concerns that the fabric was too sheer. The collection, which includes leggings, tights, and tank tops designed to offer a sculpted, weightless feel during workouts, remains available in Lululemon's North American stores, according to a company spokesperson.
The quality issue raises bigger questions for investors, as Lululemon has prided itself on technical and design prowess.