Lululemon Athletica stock faces a lower 2026 outlook

Published on 09/29/2026 at 09:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Lululemon Athletica stock was last at USD 100.58 on September 28, 2026, after revenue fell 4 percent in fiscal Q2. Guidance now points to a 5 percent to 7 percent decline.

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 stock (ISIN CA5500211090) was last at USD 100.58 on Nasdaq on September 28, 2026, down 0.71 percent from the prior close. The central issue is the company's revised fiscal 2026 outlook after second-quarter revenue fell 4 percent year over year.

Guidance points to weaker demand

According to Lululemon on September 3, 2026, net revenue reached USD 2.42 billion in the second quarter ended August 2, 2026, compared with USD 2.53 billion in the prior-year quarter. Diluted EPS was USD 2.92, down from USD 3.10, while gross margin increased to 60.5 percent from 58.5 percent.

The comparison is more complicated than the headline earnings figure suggests. The quarter included USD 0.86 per share from tariff refunds and related interest, while Americas comparable sales fell 12 percent and total comparable sales declined 9 percent.

Analysts cut targets after results

MarketBeat reported on September 21, 2026, that Morgan Stanley reduced its price target from USD 93.00 to USD 83.00 on September 4 and kept an Underweight rating. Truist Financial cut its target from USD 94.00 to USD 82.00, while Wells Fargo reduced its target from USD 105.00 to USD 95.00.

The same MarketBeat report put the average analyst rating at Reduce and the consensus target at USD 110.57. That target is USD 9.99 above the September 28 price, a 9.93 percent premium, but the range of individual views shows how sharply expectations have diverged.

Stock remains below yearly midpoint

Lululemon now expects fiscal 2026 revenue of USD 10.35 billion to USD 10.50 billion, representing a 5 percent to 7 percent decline. The company expects third-quarter revenue of USD 2.29 billion to USD 2.32 billion, down 10 percent to 11 percent, and diluted EPS of USD 0.93 to USD 0.98.

The stock's September 28 range was USD 95.35 to USD 225.98 over 52 weeks, with volume of 4,518,988 shares. Its USD 11.1 billion market capitalization reflects a valuation reset that leaves product demand, Americas performance and the tariff-related earnings benefit as the key variables for the next report.