Key Takeaways for Lululemon Stock as of July 2026
- 34 analysts cover Lululemon stock, and the split leans skeptical: one buy, 30 holds, one underperform, two sells, against a mean target of $130 that leaves roughly 10% upside from the current price.
- Running its mid case out to January 2031, TIKR models a $150 target for the stock, a 26% total return worth 5% a year.
- June 25’s truce with founder Chip Wilson ends the proxy fight, clearing CEO O’Neill’s September start.
Lululemon Stock Slides to a 7-Year Low After a Guidance Cut and Founder Truce
Lululemon athletica (LULU) designs and sells technical athletic apparel, and its fiscal first-quarter results, released June 4, 2026, showed revenue up 4% to $2.5 billion even as diluted earnings per share fell to $1.69 from $2.60 a year earlier. Comparable sales slipped 2%, and the company cut its full-year outlook the same day, sending Lululemon stock down sharply.
That top-line growth masked a steep hit to profitability. Gross margin fell 410 basis points to 54.2%, with tariffs cutting 280 basis points and markdowns adding another 40, while SG&A deleveraged 310 basis points on rehired store labor and proxy contest costs. Operating income dropped 37% to $277 million, an 11.2% margin versus 18.5% a year earlier.
Interim Co-CEO and CFO Meghan Frank pointed to two forces behind the slowdown on the Q1 2027 earnings call: “we experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top line performance. And second, not all of our product launches have met our expectations.” That commentary spike tied directly to the company’s monthslong proxy fight with founder Chip Wilson and to questions raised over product material composition.
Management now guides second-quarter revenue to $2.45 billion to $2.475 billion, a decline of 2% to 3%, with EPS of $1.76 to $1.81 against $3.10 last year. Full-year revenue guidance dropped to flat-to-down 1%, from a prior 2% to 4% growth call, and full-year EPS guidance fell to $10.95-$11.15 from $12.10-$12.30, well below fiscal 2025’s $13.26.
Even so, China Mainland revenue rose 30% (23% in constant currency), and Andre Maestrini, the other interim co-CEO, held the full-year China guide near 20% growth. Beneath the North America weakness, the company struck a truce with founder Chip Wilson on May 27, ending a proxy fight that had shadowed the stock for months, and shareholders ratified a slimmed-down, declassified board on June 25. Incoming CEO Heidi O’Neill, formerly of Nike, starts in September, tasked with fending off faster-growing private rivals Alo Yoga and Vuori in the same North American market where Lululemon just posted a 6% comp decline.
Wall Street Turns Cautious on Lululemon Stock After a Year of Target Cuts
Of the 34 analysts covering Lululemon stock, only one rates it a buy, 30 rate it a hold, one calls it an underperform and two rate it a sell. The 26 analysts contributing price targets put the mean at $130, roughly 10% above the current $119, with the median close behind at $123. That mean has fallen from $181 in early May and $290 a year ago, tracking the stock’s own slide following the June 4 guidance cut.
Brokerages trimmed targets broadly after that print, narrowing the gap between the Street’s expectations and where Lululemon stock already trades.
Wall Street Expects Lululemon Stock’s Normalized EPS to Trough Before Reaccelerating
Lululemon’s fiscal first-quarter normalized EPS came in at $1.69, down 35% from $2.60 a year earlier, matching the GAAP figure reported on the June 4 call.
The current quarter looks worse before it looks better. Consensus puts second-quarter normalized EPS at $1.80, a 42% drop from $3.10, the deepest year-over-year decline of the cycle.
From there the estimates turn. Third-quarter EPS is expected at $2.46, narrowing the decline to 5%, and fourth-quarter EPS is projected at $5.11, a return to 2% growth. By the first and second quarters of fiscal 2028, consensus has normalized EPS growing 3% and 7%, respectively.
The threshold that confirms or breaks this path sits in North America, where comparable sales fell 6% in the fiscal first quarter. Consensus EPS growth by fiscal 2028 assumes that trend stabilizes well before O’Neill’s September start has time to show results.
TIKR’s $150 Target on Lululemon Stock Holds if the Fiscal 2028 EPS Rebound Sticks
TIKR’s mid-case model values Lululemon stock at $150 by January 2031, implying a 26% total return from the current price of $119, or 5% annualized over 4.6 years.
That annualized pace sits below what investors typically expect from a consumer discretionary name that has already surrendered more than half its value over the past year, leaving little room for further multiple compression to do the work instead.
The target is reachable only if North America stabilizes. China’s 20% growth guide and $1.8 billion of net cash give incoming CEO Heidi O’Neill room to fund a turnaround before her September start, but a fourth straight quarter of target cuts shows the Street isn’t taking that recovery for granted.
Should You Invest in lululemon athletica inc.?
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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!
