Lululemon Athletica stock drops after guidance cut

Published on 09/10/2026 at 22:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Lululemon Athletica stock fell to USD 100.61 on September 4, 2026, after Q2 revenue dropped 4.3 percent to USD 2.42 billion. Morgan Stanley kept its Sell rating at USD 83.

Minimalistischer Sportbekleidungs-Store mit gefalteten Leggings auf Holztischen — Modernes Ladeninterieur mit gefalteter Sportbekleidung symbolisiert Lululemon Athletica, Aktie mit ISIN CA5500211090 im Portfolio, Illustration mit AI erstellt.

Lululemon Athletica Inc. stock (ISIN CA5500211090) closed at USD 100.61 on September 4, 2026, after a 17.4 percent drop from USD 121.77 the previous session. The move followed a sharp cut to full-year FY2026 revenue guidance, which now points to USD 10.35 billion to USD 10.50 billion.

Guidance reset hits sentiment

According to moomoo on September 10, 2026, Morgan Stanley analyst Alexandra Straton kept a Sell rating and a USD 83 price target on Lululemon Athletica. The analyst call matters because the stock was already under pressure after the company lowered FY2026 revenue guidance from growth of 2 percent to 4 percent to a decline of 5 percent to 7 percent, according to 247wallst on September 10, 2026.

That reset followed second-quarter FY2026 revenue of USD 2.42 billion, down 4.3 percent year on year, and earnings per share of USD 2.92, which beat consensus by USD 1.13, according to MarketBeat on September 10, 2026. The same report said the company posted a net margin of 12.78 percent and return on equity of 27.69 percent for the quarter.

Sales weakness is visible

TipRanks reported on September 9, 2026, that William Blair analyst Sharon Zackfia kept a Hold rating on LULU and said weakening sales momentum in the Americas and Mainland China, together with margin pressure, clouded the profit path. In the same note, Citi also kept a Hold rating with a USD 117 price target.

For investors, the comparison is stark: the stock price on September 4, 2026 was USD 100.61, while the 52-week low cited by Financhill on September 10, 2026 stood at USD 97.99 and the 52-week high at USD 225.98. The share price therefore sat close to the bottom of its yearly range after the guidance cut.

Range after the reset

Lululemon Athletica stock traded at USD 99.72 on September 10, 2026, according to Financhill, with a market capitalization of USD 11.9 billion and volume of 4.5 million shares. The same data set put the stock 2.56 percent higher on the day, but still far below the USD 225.98 52-week high.