Lululemon Faces Challenges but Strong Growth in International Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy LULU?
Source: NASDAQ.COM
- International Market Growth: Lululemon's international sales grew by 21% year-over-year, demonstrating strong brand appeal abroad, particularly in China, which is expected to offset sluggish performance in the Americas.
- North American Business Revival: Management anticipates reducing inventory markdowns and enhancing in-store experiences to revive North American operations, despite a modest revenue growth forecast of only 2% to 4% for 2026.
- Product Innovation and Expansion: Lululemon plans to launch new men's products and expand marketing efforts towards men, aiming to boost overall sales despite slower growth in men's categories, which could attract more male consumers.
- Stock Price Attractiveness: Even with an expected 8% decline in EPS, Lululemon's stock trades at just 13.5 times the midpoint of management's EPS guidance, indicating cautious investor sentiment regarding short-term recovery, yet brand strength and international progress present a compelling buying opportunity.
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Analyst Views on LULU
Wall Street analysts forecast LULU stock price to rise
22 Analyst Rating
1 Buy
21 Hold
0 Sell
Hold
Current: 145.850
Low
146.00
Averages
207.12
High
303.00
Current: 145.850
Low
146.00
Averages
207.12
High
303.00
About LULU
lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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