Key Takeaways:
- Lululemon delivered strong Q1 results with 7% revenue growth and 8% constant currency growth, maintaining full-year guidance of 7-8% growth
- The company’s product innovation strategy continues to drive customer engagement, with successful launches like Align No Line and Daydrift
- International expansion remains robust, with China Mainland revenue up 22% and Rest of World growing 17% year-over-year
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Valued at a market capitalization of approximately $28 billion, Lululemon Athletica (LULU) designs, distributes, and sells athletic apparel and accessories for both women and men.
Lululemon has established itself as a premium athletic and lifestyle apparel brand through innovative product development, strategic market expansion, and strong brand positioning while maintaining industry-leading margins and customer loyalty.

LULU stock went public in July 2007 and has returned close to 1,600% to shareholders. However, it is also down 54% from all-time highs and has declined over 20% in the past year.
The athletic apparel stock has faced headwinds from tariff concerns and market volatility, but continues to demonstrate resilience through its diversified global platform and innovation pipeline.
Given its operational strength and international growth momentum, LULU stock presents an attractive opportunity in June 2025.
Let’s explore why you might consider adding this retail stock to your equity portfolio today.
1. Lululemon Stock Maintains Course Despite Headwinds
Lululemon delivered solid Q1 results that were in line with expectations across key operational metrics. Revenue increased 7% year-over-year to $2.4 billion, or 8% on a constant currency basis, with earnings per share of $2.60, in line with consensus estimates.
Lululemon’s global platform enjoyed broad-based strength, with solid international performance. China Mainland revenue surged 22% in constant currency, despite a challenging comparison due to the timing of Chinese New Year, while the Rest of World segment grew 17%.
Regional performance showed encouraging momentum, with Canada delivering 9% growth and the U.S. achieving 2% revenue growth, marking progress from the previous quarters.
Gross margin expanded 60 basis points to 58.3%, demonstrating the company’s pricing power and operational efficiency.

Lululemon’s strategic focus on product innovation yielded strong guest response. New launches, including Daydrift, Shake It Out, and Align No Line, received positive customer feedback, with many styles selling out and requiring chase orders for the back half of the year.
Lululemon maintained its full-year revenue guidance of 7-8% growth, reflecting confidence in its business momentum and strategic execution despite external headwinds from tariffs and consumer caution.
Check out LULU’s full analyst estimates and growth forecast (It’s free) >>>
2. LULU Stock Should Benefit From Brand Positioning
Lululemon has differentiated itself through innovative product development that addresses the specific needs of customers across both athletic and lifestyle categories.
Its focus on technical performance combined with style has created a loyal customer base willing to pay premium prices.
Product innovation continues to drive customer engagement and market share gains. The retailer gained market share across both men’s and women’s segments in the premium athletic wear market in the United States, which indicates competitive strength.
Recent successful launches demonstrate the power of Lululemon’s innovation pipeline. The Align No Line legging, celebrating the 10th anniversary of the iconic Align franchise, was launched in 80 doors and sold out quickly due to strong customer response.
Strategic brand activations support product launches and build awareness. The Summer of Align campaign featured traditional and social media, exclusive experiences, and events worldwide, contributing to a 40% increase in unaided brand awareness in the United States during Q1, from mid-30s to 40%.
Technology investments continue to drive operational improvements across all segments. Enhanced product development processes, supply chain optimization, and customer engagement platforms contribute to efficiency gains and improved service quality.
3. A Focus on Global Expansion
Lululemon has achieved significant international growth momentum while maintaining strong fundamentals across its global platform. Its international business now represents 25% of total revenue, with the opportunity to reach 50% over time.
China Mainland continues to deliver exceptional growth, showcasing the brand’s appeal in this key market. Lululemon operated 154 stores in China as of Q1 and has a goal of approximately 200 stores in its current expansion plan, with potential for additional growth beyond that target.
The Rest of the World segment demonstrated strong growth, driven by successful expansion into new markets, including Denmark and Turkey, through franchise partnerships.
The company remains on track to enter Italy as a company-operated market, as well as Belgium and the Czech Republic under franchise models, later this year.
Strategic co-location opportunities provide additional growth potential. Where Lululemon has stores with high traffic and sales per square foot, it identifies opportunities to expand store sizes and offer more comprehensive assortments across men’s, women’s, and accessories categories.
Lululemon’s proactive approach to tariff management positions it well to navigate external challenges.
It has identified multiple mitigation strategies, including strategic pricing, supply chain efficiencies, and operational optimization, that will help offset tariff impacts, particularly in the second half of 2025.
Valuation Setup for LULU Stock

Analysts tracking LULU stock expect its sales to rise from $10.89 billion in 2024 to $13.94 billion in 2028, an annual increase of 7%. Comparatively, adjusted earnings are forecast to expand from $14.6 per share to $20.84 per share in this period.
LULU stock currently trades at a forward price-to-earnings multiple of 16x, which is below its 10-year average multiple of 35x.
If Lululemon stock is priced at a multiple of 15x and reaches its projected $20.84 in normalized EPS, it will trade around $312/share in early 2028, indicating an upside potential of almost 33% from current levels.
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Average Analyst Price Target for LULU Stock
Wall Street remains bullish on LULU stock, with a consensus price target of $304/share. Analysts expect the stock to rise around 29% from current levels over the next 18 months.

Notably, LULU stock currently has a high target price of $500 and a low target price of $194.
Of the 37 analysts tracking Lululemon stock, 17 recommend “Buys”, 15 recommend “Hold”, and five recommend “Sell.”
TIKR Takeaway for Lululemon Stock
Lululemon Athletica represents a compelling investment opportunity in the premium athletic apparel sector. It combines strong brand positioning with strategic international expansion and continuous product innovation.
Its solid Q1 performance demonstrates management’s ability to drive growth and maintain margins even in challenging market conditions. The expanding international presence, particularly in China and other key markets, creates substantial long-term growth opportunities.
Lululemon’s proven innovation capabilities, premium brand positioning, and strong financial foundation position LULU stock for continued outperformance as the retailer executes its global expansion strategy and navigates the current tariff environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!