Lululemon

Lululemon’s competition from younger brands is underappreciated by investors as the athleisure maker also contends with slowing North American growth and softer foot traffic, say analysts at Jefferies in a research note. Web visit data suggests competitors Alo and Vuori are drawing more interest from shoppers over the past several months, say the analysts. They add that a survey they conducted earlier this year highlighted that Lululemon’s brand momentum could be peaking at the same time competition from Alo and Vuori is rising. The analysts also say that about 94% of Alo U.S. locations are within a half mile of a Lululemon store, and several of Alo’s upcoming openings are located in the same shopping complexes as Lululemon locations.

Here’s the latest fashion newsflash: younger Americans are swapping out skinny jeans for oversize, baggy pants. That could hurt companies such as Lululemon Athletica while giving a sales boost to denim-based retailers, Barclays says, as shoppers spend less on form-fitting leggings. Analyst Adrienne Yih noted that this preference is part of a broader shift in consumer silhouettes, which, unlike a short-lived fad, will dictate trend cycles for years to come. “A silhouette shift is a virtuous cycle in that it can drive not only wardrobe refresh but also multiyear new-dollar spend as the consumer adopts the entire look over several years,” she wrote in a note to clients Monday. Apparel retailers with a strong denim business, such as American Eagle Outfitters, Gap, and Urban Outfitters could be the biggest beneficiaries of the trend, Yih noted. With consumers laser-focused on buying newer, baggier styles, these retailers may start to see higher

Piper Sandler analyst Abbie Zvejnieks maintains Lululemon Athletica (NASDAQ:LULU) with a Overweight and lowers the price target from $525 to $470.

Jefferies says data shows Lululemon’s brand strength waning and competition rising which should slow growth and pressure margins and earnings. The analysts say in a research note that the company is facing some of the issues that caused the downfall of Under Armour. They believe Lululemon is losing incremental share to Alo Yoga and Vuori, that fashion in bottoms is shifting to wide-leg and that the entrance into the Mirror business and footwear sector were mistakes. The result, according to the analysts, is that Lululemon’s total sales growth average, which was greater than 30% over the last 12 quarters, is now about 10%. Jefferies, with an underperform rating on the stock, lowers the price target to $240 from $300. Shares are down 2.5% to $364.82.

A slowdown in the North American sportswear market shows Lululemon Athletica’s stock is overvalued, Jefferies analyst Randal Konik says in a research note. The maker of workout gear’s core consumer faces incremental pressures, and while its market share expansion in China is encouraging, the highly competitive nature of that market could make it more difficult to drive higher market share across the region. That would likely make investors be incrementally more focused on slower growth in the U.S. rather than healthy international results, Konik says. “We believe sales growth rates and store productivity are at peak levels, suggesting financial results could be more volatile from here.” Jefferies sees Lululemon’s top-line trends healthy, but expects a deceleration in the 2H of 2025. Shares fall 2.5% to $364.82.

Lululemon Athletica’s (LULU) stock sell off following indications of slower sales growth is likely overdone, Oppenheimer said Friday in a note to clients. “We studied carefully trends at LULU and revisited our stance on the story. Our advice: stick with LULU,” said Oppenheimer analysts including Brian Nagel. The investment firm kept its outperform rating on the company, while cutting the price target to $445 from $540. “While a fresh cloud of uncertainty now hangs over LULU, underlying growth dynamics for the brand appear intact, improved innovation and marketing should bolster sales expansion, at least somewhat, nearer-term, and share valuations are tracking close to historic troughs,” the analysts said. The company is still Oppenheimer’s preferred larger cap pick inside the athleisure and sporting goods space, the note said.

Barclays analyst Adrienne Yih maintains Lululemon Athletica (NASDAQ:LULU) with a Overweight and lowers the price target from $610 to $546.

Lululemon Athletica’s (LULU) shares slumped almost 13% in premarket activity Friday after the company’s guidance for sales and earnings for fiscal Q1 and the full financial year lagged the market’s expectations. The company reported fiscal Q4 net income late Thursday of $5.29 per diluted share, up from $0.94 a year earlier. Analysts polled by Capital IQ expected $5.03. Net revenue in the quarter ended Jan. 28 was $3.21 billion, up from $2.77 billion a year earlier. Analysts surveyed by Capital IQ expected $3.20 billion. The company expects fiscal Q1 diluted earnings of $2.35 to $2.40 a share on revenue of $2.18 billion to $2.20 billion. Analysts surveyed by Capital IQ expect EPS of $2.60 on revenue of $2.26 billion. The company expects full-year adjusted diluted earnings of $14 to $14.20 a share on revenue of $10.70 billion to $10.80 billion. Analysts surveyed by Capital IQ expect EPS of $14.29 on

TD Cowen analyst John Kernan maintains Lululemon Athletica with a Outperform and lowers the price target from $553 to $515.

Morgan Stanley Cuts Price Target on Lululemon Athletica to $490 From $539 Amid ‘Underwhelming’ Fiscal Q4 North America Results, ‘Disappointing’ Guidance; Overweight Kept。

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our 12-month price target of $550, based on 37.9x our FY 25 (Jan.) EPS estimate and below the company’s 5-year average forward P/E multiple of 42.7x. We maintain our FY 25 EPS estimate of $14.50 and initiate our FY 26 EPS estimate at $17.00. LULU posts normalized Q4 EPS of $5.29 vs. $4.40, $0.27 above consensus estimates on revenues of $3.21B vs. $2.77B and $8M above estimates. By region in Q4, Americas revenue increased 9% Y/Y and International revenue increased 54%. Q4 adjusted gross margin expanded 200 bps to 59.4%. LULU opened 25 new company-operated stores in the quarter, bringing the total to 711. LULU guided for revenue growth of 11% to 12% and EPS of $14.00 to $14.20 for FY 25, which we believe

Lululemon Athletica (LULU) shares are a potential chance for investors to buy into a “high-quality name,” even though sequential moderating revenue growth in the US prompted the company to issue a downbeat fiscal first-quarter outlook, according to Wedbush Securities. The athletic apparel maker said late Thursday it expects per-share earnings to be in a range of $2.35 to $2.40 for the current three-month period and sales to come in between $2.18 billion and $2.2 billion. The consensus on Capital IQ was for EPS of $2.60 and revenue of $2.26 billion before the guidance was given, and later reduced to $2.39 and $2.2 billion, respectively. The company flagged a quarter-to-date slowdown in North America, where revenue increased 9% for the three months through Jan. 28 versus the previous quarter’s gain of 12%, according to Wedbush. Senior management highlighted that US traffic remains positive, but conversion has declined due to assortment-based issues