
Lululemon Athletica (LULU) Stock Forecast & Price Target
Lululemon Athletica (LULU) Analyst Ratings
Bulls say
Lululemon Athletica is facing near-term headwinds, with slow sales growth and margin pressures due to a recent deceleration in demand for their products. However, the company has a strong long-term outlook, with a potential EPS growth rate of around 15%, driven by margin recovery and comp sales acceleration. Trading at a discount to its historical valuation, Lululemon has the potential for upside if there are positive changes in tariff dynamics.
Bears say
Lululemon Athletica is facing multiple sources of margin pressure including higher tariff rates and increased markdowns, leading to a decline in EBIT margins. The company's Q2 guidance was well below expectations and there is reduced visibility into their estimates due to a tough macro environment and a new CEO who may choose to further rebase numbers. Despite initiatives to improve their product, marketing, and merchandising, there are areas of uncertainty, such as the source of product challenges and the impact of increased marketing spend, that could further damage the company's performance. As a result, I am maintaining a negative outlook on Lululemon Athletica's stock.
This aggregate rating is based on analysts' research of Lululemon Athletica and is not a guaranteed prediction by Public.com or investment advice.
Lululemon Athletica (LULU) Analyst Forecast & Price Prediction
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