Bank of America Has Lowered Expectations for lululemon athletica (NASDAQ:LULU) Stock Price

lululemon athletica (NASDAQ:LULU) had its price objective cut by equities researchers at Bank of America from $140.00 to $122.00 in a report released on Friday, Benzinga reports. The firm currently has a “neutral” rating on the apparel retailer’s stock. Bank of America‘s target price points to a potential upside of 21.59% from the company’s current price.

A number of other equities analysts also recently commented on LULU. Rothschild & Co Redburn lowered their target price on shares of lululemon athletica from $160.00 to $110.00 and set a “sell” rating for the company in a research note on Tuesday, June 16th. Stifel Nicolaus decreased their price target on shares of lululemon athletica from $176.00 to $134.00 and set a “hold” rating for the company in a research note on Friday, June 5th. UBS Group decreased their price target on lululemon athletica from $120.00 to $106.00 and set a “neutral” rating for the company in a report on Friday. Evercore reduced their price objective on shares of lululemon athletica from $175.00 to $130.00 in a research report on Wednesday, June 3rd. Finally, Needham & Company LLC restated a “hold” rating on shares of lululemon athletica in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-five have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $141.92.

lululemon athletica Stock Performance

Shares of NASDAQ:LULU traded down $21.43 during trading on Friday, hitting $100.34. The company’s stock had a trading volume of 22,983,759 shares, compared to its average volume of 3,320,931. The business has a 50 day moving average price of $118.76 and a two-hundred day moving average price of $136.61. The company has a market capitalization of $11.91 billion, a PE ratio of 8.13, a P/E/G ratio of 2.50 and a beta of 0.87. lululemon athletica has a fifty-two week low of $97.99 and a fifty-two week high of $225.98.

lululemon athletica (NASDAQ:LULU) last announced its quarterly earnings data on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.79 by $1.13. The business had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.46 billion. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.The company’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period last year, the firm earned $3.10 earnings per share. 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. As a group, equities analysts expect that lululemon athletica will post 10.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other lululemon athletica news, Director Charles Bergh purchased 4,275 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were purchased at an average cost of $117.05 per share, with a total value of $500,388.75. Following the purchase, the director owned 10,365 shares in the company, valued at approximately $1,213,223.25. This represents a 70.20% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Company insiders own 0.54% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of LULU. California State Teachers Retirement System grew its holdings in lululemon athletica by 10,065.8% in the second quarter. California State Teachers Retirement System now owns 17,180,893 shares of the apparel retailer’s stock valued at $1,961,714,000 after purchasing an additional 17,011,886 shares during the period. BlackRock Inc. purchased a new position in lululemon athletica during the second quarter worth approximately $1,010,565,000. Flossbach Von Storch SE acquired a new position in shares of lululemon athletica in the 2nd quarter valued at $207,392,000. Norges Bank acquired a new position in shares of lululemon athletica in the 4th quarter valued at $362,598,000. Finally, Boston Partners purchased a new stake in shares of lululemon athletica during the 4th quarter valued at $304,875,000. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting lululemon athletica

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

• Positive Sentiment: Second-quarter diluted EPS of $2.92 exceeded the $1.79 consensus estimate. However, the result included approximately $134.5 million in tariff refunds, which contributed about $0.86 per share, making the beat less indicative of underlying profitability. lululemon Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company repurchased 2.7 million shares for $330 million during the quarter. Investor Michael Burry also indicated continued confidence in LULU below $100, potentially providing a limited counterpoint to the broader selling pressure. Michael Burry on Lululemon
• Neutral Sentiment: Analysts broadly moved to a more cautious stance. Wells Fargo, JPMorgan, UBS, Baird, Telsey and Bernstein lowered price targets, while ratings generally remained neutral, equal weight, hold or market perform. Some revised targets still imply upside from current levels.
• Negative Sentiment: Revenue fell 4% year over year to $2.416 billion, below the $2.46 billion consensus, while comparable sales declined 9% overall and 10% on a constant-currency basis. Americas revenue dropped 8%, and China revenue also declined, signaling that international growth is no longer fully offsetting weakness in the core market. Lululemon forecast cut and CEO challenge
• Negative Sentiment: lululemon cut fiscal 2026 revenue guidance to $10.35 billion-$10.50 billion from $11.00 billion-$11.15 billion and reduced EPS guidance to $9.48-$9.73. Third-quarter revenue and EPS guidance also fell well below Wall Street expectations, raising concerns about product acceptance, store traffic, margins and competitive pressure. LULU Q2 earnings call takeaways

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.