Lululemon Faces Sales Growth Challenges Amid Margin Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 08 Dec 25
Source: Coinmarketcap
Lululemon Athletica Inc's stock has declined by 5.00%, crossing down the 5-day SMA as the company faces slowing sales growth and margin pressures.
The projected third-quarter EPS is $2.22, slightly above consensus but down from $2.87 last year. Revenue is expected to reach $2.496 billion, reflecting a 4.2% year-over-year increase, but the company anticipates a gross margin decline of 410 basis points.
With these challenges, Lululemon is working to refresh its merchandise assortment and improve performance, but the current market sentiment remains cautious as investors await the upcoming earnings report.
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.
