lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.
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Lululemon Expected to Cut Fiscal 2026 Outlook
Lululemon Athletica is expected to cut its fiscal 2026 outlook following weaker sales trends in the US and China, according to UBS Securities, which flagged a possible downward revision to the long-term forecast. The pressure in these key markets has raised fresh questions about the company's future growth plans in its largest regions. Lululemon, which designs and sells premium athletic apparel, footwear, and accessories, generates significant demand from North America and China, making these trends critical for its $13.9 billion business. The expected cut aligns with existing risks around soft U.S. demand, brand fatigue, and margin pressure from tariffs and promotions, suggesting the turnaround may take longer than bulls expect. Analysts note some strength in international regions and ongoing investments in product flow and digital as potential supports, but the clearest signal will be whether upcoming quarterly results show improvement in U.S. traffic, conversion, and markdown levels.
Fashion brands launch own resale platforms to capture secondhand market growth
Major fashion brands including Zara, H&M, Lululemon, Levi's, and REI are launching their own resale platforms to sell secondhand versions of their products alongside new ones, seeking a share of a global secondhand apparel market projected to reach $393 billion by 2030. The U.S. resale market is expected to hit $78.8 billion by the end of the decade, growing nearly four times faster than overall retail clothing sales last year. H&M reported that resale represented 0.8% of its 2025 turnover, with revenue reaching SEK 1,844 million, a 31% increase from the previous year. Brands are motivated by both sustainability goals and competitive pressure, as resale has largely occurred on third-party platforms like eBay, Poshmark, Depop, and The RealReal. By operating their own marketplaces, companies aim to control the customer experience, strengthen loyalty, and capture revenue throughout a garment's life cycle.
Lululemon faces California lawsuit over alleged misleading discount prices
Lululemon athletica is facing a consumer lawsuit in California that challenges its use of reference prices on discounted items. The complaint alleges that Lululemon used former prices that did not reflect actual recent selling prices, creating the appearance of larger discounts. The case adds to broader legal scrutiny of how major retailers communicate pricing and promotions to shoppers. For investors, the key issue is not only potential legal costs but also any effect on consumer trust and buying behavior. Similar cases in the retail sector have drawn attention to reference pricing practices, so developments here may be followed as part of a broader pattern affecting listed retailers.
Lululemon Outperforms Market but Faces Analyst Downgrades and Earnings Decline
Lululemon closed at $120.32, up 2.11%, outpacing the S&P 500's 0.21% gain. The stock has risen 3.1% over the past month, beating the Consumer Discretionary sector's 0.15% loss. Analysts expect upcoming quarterly earnings of $1.79 per share, a 42.26% year-over-year drop, on revenue of $2.47 billion, down 2.26%. Full-year estimates stand at $10.94 per share and $11.08 billion in revenue, declines of 17.5% and 0.22% respectively. The Zacks Consensus EPS estimate has been revised 1.77% lower over the past month, and Lululemon carries a Zacks Rank of 5, or Strong Sell.
NIKE Faces Persistent Demand Headwinds as Turnaround Efforts Continue
NIKE is grappling with weakening consumer demand that drove a 4% currency-neutral revenue decline in its fourth quarter, with the company citing cautious discretionary spending amid an uncertain macroeconomic environment. NIKE Brand revenues were flat on a reported basis but down 3% currency-neutral, as declines in Greater China and EMEA were partly offset by North American growth, while NIKE Direct fell 7% on a reported basis due to a 12% drop in NIKE Brand Digital and a 7% decline in NIKE-owned stores. Weakness in Sportswear and Jordan Streetwear is expected to persist into fiscal 2027, with improvement likely only in the back half, and although performance categories like Running, Training and Global Football are gaining momentum, they have not yet offset the larger lifestyle segment's softness. The company is executing its "Win Now" turnaround strategy focused on product innovation, marketplace enhancements and stronger consumer engagement, while streamlining inventory and reducing promotional activity. Shares have lost 32.7% over the past six months, and the stock carries a Zacks Rank #4 (Sell).
Truist downgrades Lululemon to sell, slashes price target to $94
Truist Securities downgraded Lululemon Athletica to Sell from Hold and cut its price target to $94 from $115, warning of structural headwinds that could pressure earnings and delay a recovery. The brokerage cited weakening card spending trends, deteriorating brand momentum on social media, rising competition, and leadership transition uncertainty, noting the stock has rebounded more than expected despite a soft first-quarter outlook. Truist lowered its fiscal 2026 and 2027 earnings per share estimates to $10.50 and $10.25, respectively, from $11.25 and $11.75, both below consensus, and reduced its valuation multiple to 9 times from 10 times. Analysts highlighted softer Google Trends and TikTok data, declining card spending, and Reddit discussions pointing to weaker brand perception, along with competitive threats from newer activewear brands and slowing momentum in China. The removal of the U.S. de minimis exemption for certain cross-border shipments was also flagged as an additional structural headwind for profitability.
Lululemon Opens Brampton Distribution Center Amid 44% Share Price Drop
Lululemon athletica has opened a 1 million square foot distribution center in Brampton, Ontario, to support North American e-commerce growth. The company's share price has fallen 44.3% year to date, with a one-year total shareholder return down 48.07%, though a recent 7-day return of 3.34% suggests selling pressure may be easing. The stock last closed at $117.42, which sits below a narrative fair value estimate of $150, implying a 21.7% undervaluation according to a detailed cash flow analysis. However, a separate discounted cash flow model from Simply Wall St estimates a fair value of $74.87, indicating the stock may be overvalued. The company is also grappling with higher cross-border costs tied to tariffs and changes in US policy.
Lululemon backs nylon recycling startup Syntetica in $30 million Series A
Lululemon has invested in Syntetica, a French nylon recycling startup, as part of its $30 million Series A funding round. The round was led by Bpifrance's Ecotechnologies 2 fund and also drew backing from MAS Holdings, EQT Ventures, SWEN Capital Partners, and family offices. Syntetica has developed a process to recycle both Nylon 6 and Nylon 6,6 from mixed textile waste, producing pellets that can be turned into new yarn. The company plans to use the funding to demonstrate production of hundreds of tons of pellets per year and deliver them to clothing supply chain clients, with a recycling project expected to reach market early next year. Syntetica has already partnered with brands including Victoria's Secret and Etam, and established a commercial demonstration facility in Clermont-Ferrand through a collaboration with Michelin's Centre for Sustainable Materials.
Canadian everyday luxury apparel retailer Aritzia reported a 43% increase in fiscal first-quarter sales, driven by strong U.S. performance and a surge in direct-to-consumer revenue. For the quarter ended May 31, the company earned a profit of CAD $0.96 per share on CAD $951 million in sales, both beating expectations. U.S. sales, which account for more than two-thirds of net revenue, rose 54.5%, while Canadian sales grew 25%. Retail revenue increased 39%, and direct-to-consumer sales, making up a third of net revenue, jumped 55.5%, contributing to a gross profit margin of 50.3%, up 310 basis points year-over-year. Adjusted EBITDA rose 80.5% and adjusted net income nearly doubled, representing 12.3% of net revenue. Looking ahead to fiscal 2027, Aritzia expects sales between CAD $4.55 billion and CAD $4.75 billion, with a midpoint of CAD $4.65 billion, just shy of the $3.32 billion estimate.
Lululemon Stock Looks Reasonable on Earnings But Weak on Broader Checks
Lululemon Athletica's stock has fallen 68.7% over the past three years, and while it screens as undervalued on some earnings-based multiples, broader checks present a mixed picture. The company trades at about 9.0 times earnings, well below the luxury industry average of roughly 21.5 times and a peer group average of about 32.8 times, with a tailored fair price-to-earnings ratio estimated at about 20.3 times. However, only three out of six value checks were passed, suggesting a more balanced view than a clear bargain. The recent resolution of a proxy dispute and board reshuffle may support greater focus on product and international growth, but uncertainty around execution and revenue trends remains a key risk.
Zacks names nVent Electric Bull of the Day and Lululemon Bear of the Day
Zacks Equity Research has named nVent Electric as the Bull of the Day and Lululemon as the Bear of the Day. nVent Electric holds a Zacks Rank of 1, or Strong Buy, after reporting record quarterly revenue of 1.2 billion dollars, a 53 percent year-over-year increase, and raising its full-year guidance amid momentum in data center solutions tied to the broader AI buildout. Lululemon carries a Zacks Rank of 5, or Strong Sell, as its growth cools, with Americas revenue declining 3 percent year-over-year and comparable sales down 5 percent, while gross margin fell 410 basis points to 54.2 percent. The report also highlights Phillips 66 and Halliburton as large-cap energy stocks that have surged 33.7 percent and 56.4 percent over the past year, respectively, and may continue to benefit from lower crude prices following a U.S.-Iran interim deal.
Nike stock fell 11% in June as investors grew cautious ahead of its earnings report, especially after competitor Lululemon Athletica posted disappointing results earlier in the month. The company has been grappling with internal missteps, including a shift away from wholesale partnerships that hurt sales, along with inflation and tariff pressures. Nike reported mixed fiscal 2026 fourth-quarter results, with flat full-year revenue and a 1% decline in quarterly revenue, though gross margin improved to 49.2% and earnings per share reached $0.72, boosted by a tariff refund. Sales in China dropped 17% in the quarter, and near-term guidance was lowered due to changing global shopping behaviors related to the Iran war, but wholesale revenue in North America grew double digits for the full year. The stock has since recovered, rising 4% after the report as investors focus on the ongoing turnaround efforts.
lululemon downgraded to Zacks Rank #5 Strong Sell amid North America slowdown
lululemon athletica inc. has been downgraded to a Zacks Rank #5 (Strong Sell) as its near-term earnings outlook deteriorates. The athletic apparel maker is seeing weakening trends in North America, its largest market, with Americas revenue falling 3% year-over-year and comparable sales down 5% in the latest quarter. Gross margin contracted 410 basis points to 54.2%, further pressuring profitability. Analysts have turned bearish, issuing negative earnings estimate revisions that reflect the growth cooldown and margin compression.
Victoria's Secret reported first-quarter revenue of $1.56 billion, up 15.3% year on year and exceeding analyst expectations by 2.6%. The company also beat earnings per share and gross margin estimates, with double-digit sales growth across its Victoria's Secret, PINK, and Beauty segments. It raised its full-year guidance by the most among the eight apparel retailers tracked, and its stock has surged 54.4% since the announcement to $83.85. Among peers, Tilly's posted the fastest revenue growth at 15.9% and the biggest estimate beat, while Lululemon delivered the weakest guidance update, with its stock falling 8.9%.
Lululemon appoints Marc Maurer and Laura Gentile to board
Lululemon has officially appointed Laura Gentile and Marc Maurer to its board of directors, expanding the board from nine to 11 members. The appointments follow a cooperation agreement with founder Chip Wilson in May, ending a proxy feud. Gentile, a former ESPN chief marketer, will serve as a Class I director, while Maurer, former co-CEO of On, will serve as a Class III director. As part of the deal, Wilson agreed to standstill and voting provisions until 30 days before the 2028 annual meeting nomination deadline. The board expansion comes as Lululemon works to reverse declining Americas sales, with first-quarter net revenue rising 4% to $2.5 billion driven by international growth.
MGM Resorts led consumer discretionary sector in Q2; Lululemon among laggards
The consumer discretionary sector rose over 6% in the second quarter, with MGM Resorts International surging 34.14% to lead all gainers. Williams-Sonoma followed with a 32.11% gain, while eBay, DoorDash, and Ford also posted strong returns. On the downside, Tractor Supply Company fell 30.44% amid pet-category weakness, and Lululemon Athletica dropped 22.30% as it faced brand-relevance challenges and increased competition. Analysts noted that resilient consumer spending, easing oil prices, and a strong labor market supported the sector, though inflation and geopolitical risks remain key factors ahead.
Lululemon Athletica Shares Rise 5.2% After Proxy Truce Reshapes Board
Lululemon Athletica's stock climbed 5.2% after shareholders at the June 25 annual meeting approved three management-supported directors and two nominees aligned with founder Chip Wilson, ending a long-running proxy dispute. The board refresh blends seasoned consumer executives with the founder's picks, reducing governance uncertainty and potentially allowing management to focus more on product and international growth plans. The resolution follows a May 27 cooperation agreement with Wilson that formalized the addition of his two nominees plus a future apparel expert to the board. While the cleaner governance picture removes a distraction, it does not directly alter near-term swing factors such as whether new assortments can reignite traffic or whether mitigation efforts can offset several hundred million dollars of tariff and de minimis related headwinds. The company guides to flat to slightly negative 2026 growth amid a brand and product reset.
Insider Sales Surge at D-Wave and Applied Materials While Lululemon Insiders Buy
Insider trading activity has diverged sharply across three major companies. At D-Wave Quantum, insider sales spiked to $36 million in the second quarter after the U.S. Department of Commerce announced its intention to provide $100 million in funding to the company, part of a broader $2 billion quantum initiative. At Applied Materials, insiders sold $114 million worth of stock in the second quarter as shares surged roughly 125% in 2026, driven by strong demand for semiconductor manufacturing equipment. In contrast, insiders at Lululemon Athletica purchased nearly $1 million in stock during the second quarter, with negligible sales, as the company's shares have fallen almost 50% this year amid slowing revenue growth.
Lululemon athletica inc. has been assigned a Zacks Rank #5, or Strong Sell, reflecting significant downward revisions to earnings estimates. The consensus estimate for the current quarter has fallen 34.4% over the last 30 days to $1.79 per share, while the current fiscal year estimate has dropped 9.1% to $11.14. Shares have lost 14.5% over the past month, underperforming the broader market. The company is expected to report a 2.2% year-over-year revenue decline for the current quarter, with sales estimated at $2.47 billion.
Urban Outfitters posts record Q1 sales as apparel retailers wrap earnings season
Urban Outfitters reported record first-quarter sales and earnings, with revenue rising 11.4% year on year to $1.48 billion, beating analyst estimates by 1.4%. The company was one of eight apparel retailers tracked by StockStory that collectively exceeded revenue consensus by 1% and issued in-line guidance for the next quarter. Among the group, Tilly's delivered the strongest performance with revenue up 15.9% to $124.7 million and the biggest analyst beat, while Lululemon was the weakest, missing full-year EPS guidance and seeing its stock fall 15.6%. Abercrombie & Fitch and American Eagle posted mixed results, with revenue of $1.11 billion and $1.20 billion respectively. On average, share prices of the eight retailers have held steady, rising 1.8% since the latest earnings reports.
Lululemon shares hit 52-week low after 50% decline
Lululemon's stock has fallen 50.4% over the past six months to a new 52-week low of $105.41 per share, partly driven by softer quarterly results. The company operated 816 locations in the latest quarter and has expanded its store count at a 7.4% annual rate over the last two years, outpacing the broader consumer retail sector. Lululemon posted an average gross margin of 57.5% and an average operating margin of 20.8% over the same period, reflecting what the report calls best-in-class unit economics and elite profitability. Following the decline, the stock trades at 10 times forward earnings.
Lululemon faces fresh China backlash after Great Wall yoga event
Lululemon Athletica is facing renewed criticism in China after apologizing for a late-May yoga event on the Great Wall that drew more than 2,000 participants but sparked backlash over the use of a Japanese taiko drum. The company said the event was built around honoring Chinese culture, but admitted it should have been more thoughtful and sensitive in reviewing the drum performance. The controversy adds pressure as China remains Lululemon's fastest-growing major market, yet sales growth there is expected to slow this year, compounding challenges from weaker North America performance, a lowered annual forecast, and shares down about 46% so far this year. Competition is also heating up, with Alo Yoga announcing its China entry, while another Lululemon campaign in Shanghai earlier in June drew criticism after participants said they were left practicing in the rain without proper rain gear or backup facilities.
Lululemon Athletica and StubHub face contrasting 2026 outlooks as consumer spending shifts
Lululemon Athletica and StubHub present divergent investment cases in 2026 as consumer spending pivots between premium apparel and live experiences. Lululemon reported fiscal 2025 revenue of $11.1 billion, a 4.9% increase, with net income of $1.6 billion, though its net margin contracted to 14.2% from 17.1% a year earlier. The company cut its 2026 sales outlook to flat, and its stock hit a 52-week low of $109.36 amid a CEO transition, with Heidi O'Neill set to take over in September. StubHub posted fiscal 2025 revenue of $1.7 billion, down 1.4%, and a net loss of approximately $2.0 billion, but swung to a first-quarter 2026 net income of $48.0 million on revenue of $446.0 million, a 12% year-over-year increase. StubHub shares rebounded from a 52-week low of $5.74 in April, and the company trades at a forward price-to-earnings ratio of 23.2 times, compared with Lululemon's 10.5 times.
Lululemon Faces Sales Slowdown and Leadership Uncertainty as Wholesale Prices Jump 6.5%
Lululemon Athletica is grappling with slowing sales and a recent leadership change as the producer price index rose 6.5% year over year in May, the highest increase since 2022. The company's constant-currency revenue grew just 2% last quarter, a sharp deceleration from 18% growth in mid-2023, while comparable sales fell 2% and gross margin dropped over four percentage points to 54.2%. Full-year guidance was lowered, with revenue now expected to decline slightly. Former CEO Calvin McDonald departed in January, and incoming CEO Heidi O'Neill, a 25-year Nike veteran, will not start until September 8, 2026, leaving a leadership gap. International revenue rose 22%, but the American segment declined 4% amid negative brand sentiment. The stock trades at 11 times forward earnings, but the author cautions it could be a value trap given product strategy uncertainty and inflation headwinds.