Lululemon Athletica stock falls as BMO starts coverage at Underperform after weak Q2
Published on 09/09/2026 at 22:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Lululemon Athletica stock (ISIN CA5500211090) remains under significant pressure after BMO Capital Markets began coverage of the athletic-wear group at Underperform on September 8, 2026 with a price target of USD 70. According to an alert summarizing recent trading, the shares closed at USD 100.61 on September 4, 2026, around 80% below their December 2023 peak of USD 511.29, underscoring how far sentiment has deteriorated.
Q2 fiscal 2026 figures show revenue and profit decline
Lululemon Athletica Inc. reported second-quarter fiscal 2026 results for the period from early May 2026 through August 2, 2026, showing that growth has stalled in key markets. As Seoul Economic Daily reported on September 9, 2026, net revenue in the second quarter reached USD 2.42 billion, down 4% year over year for the June through August period. The same report noted net profit of USD 370.9 million, a decline of 11% from the prior-year quarter, highlighting that profitability is coming under pressure as demand softens.
The weakness was particularly visible in the Americas region. According to Stocktwits on September 9, 2026, second-quarter revenue fell about 4% year over year to USD 2.42 billion, while sales in the Americas declined 8%. A separate analysis by Inside Retail Asia on September 9, 2026 highlighted that comparable sales globally fell 9% year over year in the quarter, with comparable sales in the US market down 12%, emphasizing how demand in Lululemon’s largest region has turned.
New CEO faces a reset as guidance and consensus move lower
The operational weakness is arriving just as Lululemon Athletica transitions to new leadership. As Inside Retail Asia described on September 9, 2026, the scale of the challenge for incoming chief executive Heidi O’Neill became clearer just days before she took the helm, when the second-quarter figures revealed a sharper-than-expected decline in sales and a 9% drop in comparable sales globally. In the US, comparable sales declined 12% in the quarter, indicating that Lululemon’s core North American business is no longer the reliable growth engine it once was.
Analysts have responded by marking down earnings expectations. According to Yahoo Finance on September 9, 2026, the Zacks Consensus Estimate for the current quarter now stands at earnings of USD 1.36 per share, implying a 47.5% decline year over year, while the consensus earnings estimate of USD 9.49 for the current fiscal year suggests a 28.4% drop versus the prior year. The same overview notes that the consensus EPS estimate for the next fiscal year is USD 9.55, only 0.7% higher than the current year expectation, underlining that analysts currently see limited earnings growth in the near term.
BMO Underperform rating and valuation downside
The most immediate catalyst for Lululemon Athletica stock around September 9, 2026 is the fresh initiation of coverage by BMO Capital Markets with a cautious stance. As Dow Jones Newswires via TradingView reported on September 9, 2026, BMO initiated Lululemon Athletica Inc. at Underperform and announced a price target of USD 70 per share at 14:25 GMT, citing demand concerns. A related coverage note on Investing.com on September 8, 2026 likewise highlighted that BMO’s stance reflects worries about slowing demand for key product categories.
For investors, the BMO price target quantifies the perceived downside. According to Stocktwits on September 9, 2026, BMO Capital sees about 32% downside for the stock from recent levels as it begins what analysts describe as a new CEO-led reset. That assessment explicitly ties the rating to weaker second-quarter trends, including the roughly 4% year-over-year revenue decline to USD 2.42 billion and the 8% drop in Americas sales, as well as pressure on core categories such as leggings.
Stock performance and market reaction
The combination of disappointing second-quarter fiscal 2026 results and cautious analyst commentary has triggered sharp moves in Lululemon Athletica stock. An alert from Mitrade on September 9, 2026 noted that the shares closed at USD 100.61 on September 4, 2026, down 17.38% in a single session and around 80% below the all-time high of USD 511.29 reached in December 2023. Earlier, as Tide News reported, Lululemon fell nearly 20% to USD 97.99 per share at the close on September 4, 2026, marking its lowest level since May 2018 before partially recovering to USD 103.19 by September 8, 2026.
A same-day trading snapshot from Financhill on September 9, 2026 showed Lululemon Athletica Inc. down 17.38% intraday at a price of USD 103.19. Taken together, these moves illustrate a market repricing that has pushed the stock from its December 2023 peak of USD 511.29 to just above USD 100 as of early September 2026. That represents a decline of roughly 80%, a magnitude more typical of structurally challenged businesses than of former growth leaders, and it highlights how investor expectations for earnings and revenue growth have been cut back.
Risk factors investors are watching
Beyond the headline numbers, several risk factors stand out in recent coverage. As Seoul Economic Daily pointed out on September 9, 2026, Lululemon’s sales of leggings, a core product category, have come under pressure, contributing to the 20% drop in that segment and fueling concerns that the brand may be losing momentum in its signature offerings. Tide News added that in mainland China, second-quarter net revenue reached USD 407 million, up 4% year over year, but at a fixed exchange rate comparable sales fell 8%, marking the first time Lululemon has reported negative comparable sales in China on a fixed-rate basis.
The combination of falling comparable sales in North America and slowing momentum in China suggests that Lululemon Athletica faces a more complex demand environment than in previous years. Analyst commentary compiled in the Yahoo Finance consensus overview on September 9, 2026, which shows expected current-quarter EPS down 47.5% year over year and full-year EPS down 28.4%, reinforces the view that the company is now in a reset phase rather than a high-growth phase. For investors, this means that future performance of Lululemon Athletica stock will depend heavily on whether new leadership and product initiatives can stabilize comparable sales and rebuild earnings growth from the lower base set by the second-quarter fiscal 2026 results.
Stock level and investor takeaway
As of the last completed trading day referenced in recent alerts, Lululemon Athletica stock closed at USD 100.61 on September 4, 2026 on its primary listing in the United States, with intraday trading around USD 103.19 on September 8 and September 9, 2026 on Nasdaq data cited by third-party portals. At that level, the shares stand about 80% below their December 2023 high of USD 511.29 and reflect the roughly 4% year-over-year decline in second-quarter fiscal 2026 revenue to USD 2.42 billion and the 11% drop in net profit to USD 370.9 million, as reported by Seoul Economic Daily on September 9, 2026. For investors, the combination of a newly initiated Underperform rating from BMO Capital with a USD 70 price target and sharply lower consensus EPS expectations underlines that Lululemon Athletica stock currently trades in a reset phase where execution on margins, product mix and regional growth will be decisive.
Key data on Lululemon Athletica stock
- Company: Lululemon Athletica Inc.
- ISIN: CA5500211090
- Ticker: LULU
- Trading venue: Nasdaq
- Price (as of September 4, 2026): 100.61 USD
- Market capitalization: 12,000,000,000 USD (as of September 4, 2026)
- Sector / Industry: Consumer Discretionary / Apparel
- Index membership: S&P 500
