Lululemon's Weak 2026 Outlook Amid Tariffs and Proxy Battle
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy LULU?
Source: CNBC
- 2026 Sales Guidance Downgrade: Lululemon expects first-quarter sales between $2.40 billion and $2.43 billion, falling short of the $2.47 billion estimate, indicating struggles with high tariffs and rising costs impacting growth.
- Earnings Forecast Miss: The company anticipates earnings per share in the range of $1.63 to $1.68, significantly below the $2.07 expected by analysts, reflecting challenges in profitability that could undermine investor confidence.
- Rising Tariff Costs: Lululemon projects tariff costs to reach $380 million in 2026, an increase of $105 million from last year, and despite mitigation efforts, the significant impact on profits is expected to strain overall financial performance.
- Intensifying Market Competition: In the Americas, Lululemon forecasts a sales decline of 1% to 3%, while anticipating a 20% growth in China, highlighting the disparity in growth potential across regions and the need to bolster competitiveness in the U.S. market to sustain overall growth.
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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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