Lululemon faces challenges amid inventory issues and leadership changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 09 Jan 26
Source: NASDAQ.COM
Lululemon Athletica Inc's stock fell by 5.01%, hitting a 5-day low, as the company grapples with significant inventory challenges and leadership uncertainty.
This decline is attributed to sector rotation, as Lululemon's stock underperformed the market by approximately 60% in 2025 amid ongoing inventory issues and a 5% decline in same-store sales in Q3 2025. Additionally, the impending departure of CEO Calvin McDonald at the end of January 2026 adds to the uncertainty surrounding the company's strategic direction.
The implications of these challenges are significant, as they may lead to diminished investor confidence and a weakened competitive position in the activewear market, especially with increasing pressure from emerging brands.
Analyst Views on LULU
Wall Street analysts forecast LULU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LULU is 207.12 USD with a low forecast of 146.00 USD and a high forecast of 303.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
1 Buy
21 Hold
0 Sell
Hold
Current: 192.790
Low
146.00
Averages
207.12
High
303.00
Current: 192.790
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.
