Key Stats for Lululemon Stock
- Pre-market price change for Lululemon stock: -2%
- $LULU Share Price as of Mar. 17: $159
- 52-Week High: $349
- $LULU Stock Price Target: $205
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What Happened?
Lululemon (LULU) stock slipped after the company reported its Q4 results and issued a cautious outlook for 2026.
The numbers themselves weren’t bad.
- Revenue came in at $3.64 billion, slightly above estimates of $3.58 billion,
- Earnings of $5.01 per share beat the expected $4.78.
But Wall Street was focused on what comes next, and the guidance disappointed.
For Q1,
- Lululemon expects revenue of $2.40 to $2.43 billion, short of analyst estimates of $2.47 billion.
- EPS guidance of $1.63 to $1.68 was well below the $2.07 consensus.
The full-year picture wasn’t much better.
- The company guided for revenue of $11.35 to $11.50 billion against estimates of $11.52 billion,
- EPS of $12.10 to $12.30 versus expectations of $12.58.
Several things are weighing on Lululemon stock at once.
- Tariffs are the biggest near-term cost pressure. The company expects a gross tariff impact of $380 million in 2026, up from $275 million last year. Even after mitigation efforts, the net impact is expected to hit $220 million.
- On top of that, same-store sales in the Americas have been flat or declining for roughly two years. Management guided for North America revenue to decline 1% to 3% in 2026. The company has been leaning on discounts to move inventory, which hurt margins. Now it’s pulling back on promotions to protect its premium brand image, but that transition will weigh on near-term sales.
- There’s also a proxy battle with founder Chip Wilson adding noise. He’s been publicly pushing for board changes and criticizing the company’s direction.
Lululemon announced former Levi Strauss CEO Chip Bergh is joining the board, and a current director won’t seek reelection.
That’s a partial win for Wilson, but the dispute isn’t fully resolved.
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What the Market Is Telling Us About Lululemon Stock
Investors aren’t panicking, but they’re not buying the recovery story just yet either.
The weak guidance suggests that the North American business still has real work ahead before it inflects.
The international story is genuinely bright.
China is expected to grow roughly 20% this year, and the Rest of the world is tracking mid-teens. But those markets are still a fraction of overall revenue, and they can’t fully offset the Americas drag.
Lululemon stock has been under pressure for over a year now, it is down 51% in last 12 months and today’s guidance makes it clear the bottom isn’t in yet.
Management is making the right moves, reducing markdowns, refreshing product lines, cutting lead times. But the payoff will take time, likely into late 2026 and beyond.
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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!
