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Lululemon Athletica Inc

Lululemon Athletica Inc

LULU
$116.33USD↓-2.07%-2.46 today

MARKET CAP

13.8B

P/E (TTM)

9.4x

FWD P/E

10.3x

DAY RANGE

$116 – $119

52W RANGE

$104
$234

AI Summary

Stalk
TrimMedium

LULU remains in a Stage 4 decline under declining moving averages, with confirmed lower highs and lower lows. Medium-term bias is bearish, while short-term price is indecisive around the 9/20 EMA resistance zone. We will defer selling and look to trim into rallies back up to those EMAs where resistance is likely to hold.

  • ↑International revenue grew 22% in China, hedging North American slowdown
  • ↑Plans to increase new styles to 35% by spring 2026 to boost engagement
  • ↓North America revenue fell 3%, consumer caution weighs on growth
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The case for & against

Bull & Bear analysis

Bearish

Lululemon Athletica Inc. (NASDAQ: LULU) is a leading retailer in the athletic apparel market, known for its high-quality products designed for yoga, running, and other fitness activities. The company seeks to enhance its market position through a focus on product innovation, community engagement, and international expansion, particularly in high-potential markets like China and other APAC regions. Despite facing recent challenges in the North American market, Lululemon has maintained solid revenue growth in international markets.

Bull says

  • ↑International revenue grew 22% in China, hedging North American slowdown
  • ↑Plans to increase new styles to 35% by spring 2026 to boost engagement
  • ↑Maintains $1.3 B cash, zero debt and executed $430 M share buybacks
  • ↑FY 2025 guidance of $11.15–11.30 B reflects management’s optimistic outlook
  • ↑Q1 revenue rose 4% YoY to $2.5 B despite a 3% North America decline
  • ↑High earnings yield and strong profitability factors suggest upside potential

Bear says

  • ↓North America revenue fell 3%, consumer caution weighs on growth
  • ↓Tariffs drove gross margin down to 54.2% from 58.3%, cutting ~270 bps
  • ↓Excess inventory up 11% YoY raises markdown and cash‐flow risks
  • ↓Q1 EPS dropped to $1.69 vs. $2.60 prior-year, reflecting margin pressure
  • ↓Negative growth, revisions and momentum factors point to weakening outlook
  • ↓Underwhelming new launches risk long-term brand strength and sales

Investment themes with LULU

eTailing↑ +0.56%

Online retail and e-commerce platforms

FIGS · LQDT · CVNA
Quality↑ +0.54%

Companies with strong fundamentals and stability

NVDA · AAPL · MSFT

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 07-17-2026neutral

Transcript signals

Bull points

  • I'm pleased with this performance, which was relatively consistent with quarter four.
  • In quarter one, total revenue increased 7% or 8% on a constant currency basis. Gross margin increased 60 basis points to 58.3%, and earnings per share were $2.60, ahead of our expectations.
  • In addition, in quarter one, we continued repurchasing shares and bought back another $430 million of stock.

Bear points

  • my sense is that in the U.S., consumers remain cautious right now, and they are being very intentional about their buying decisions.
  • Relative to our guidance, which was for gross margin approximately flat with last year, the upside was driven predominantly by lower product costs, leverage on fixed costs, and slightly better markdowns.
  • Relative to our prior guidance for a 60 basis point decrease, we expect the additional 50 basis points of deleverage to be driven predominantly by increased tariffs offset somewhat by our enterprise-wide efforts to mitigate these costs and slightly higher markdowns.
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