Lululemon (LULU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Recently, Zacks.com users have been paying close attention to Lululemon (LULU). This makes it worthwhile to examine what the stock has in store.
LULU faces margin pressure from tariffs, weak U.S. traffic and cost inflation, raising doubts over its premium valuation.
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LULU leans on fresh launches like Daydrift and Glow Up to defend market share amid soft U.S. traffic and rising competition.
lululemon's 52% stock decline in 2025 far outpaces peers, signaling company-specific challenges beyond sector rotation or macro headwinds. Declining revenue growth, increased tariffs, fierce competition from cheaper alternatives are compressing margins and eroding brand moat, justify the lower valuation. The severe sell-off has pushed the company's valuation to a compelling multi-year low.
In the closing of the recent trading day, Lululemon (LULU) stood at $195.19, denoting a -2.64% move from the preceding trading day.
LULU's inventory build aims to fuel innovation and protect market share, but softer U.S. demand may test the strategy's payoff.
RL's brand strength and global momentum challenge LULU's innovation and international growth in a premium apparel showdown.
Zacks.com users have recently been watching Lululemon (LULU) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Lululemon's stock is deeply undervalued, trading at one third its 5-year EV/EBITDA. International sales growth remains robust while the company's financials are conservative enough to weather any economic environment. Despite risks from low-cost 'dupes,' my conservative valuation suggests a 37.3% IRR with limited downside, making LULU a compelling contrarian Buy.
lululemon's stock has dropped 54% amid concerns over revenue growth and increased competition in the premium activewear sector. I believe the market is overly pessimistic, as lululemon remains a leader with strong top-line growth and superior margins versus peers. At a forward P/E of 13x, LULU offers significant upside for long-term investors seeking value in a profitable, well-known brand.