lululemon athletica (NASDAQ:LULU) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

lululemon athletica (NASDAQ:LULU) announced its quarterly earnings data on Thursday. The apparel retailer reported $1.69 EPS for the quarter, topping the consensus estimate of $1.67 by $0.02, FiscalAI reports. The company had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.43 billion. lululemon athletica had a net margin of 14.22% and a return on equity of 34.82%. The company’s quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the firm posted $2.60 EPS. lululemon athletica updated its FY 2026 guidance to 10.950-11.150 EPS and its Q2 2026 guidance to 1.760-1.810 EPS.

Here are the key takeaways from lululemon athletica’s conference call:

• Lululemon cut its full-year revenue outlook to $11.0 billion-$11.15 billion, implying sales are now expected to be flat to down 1% versus 2025, as recent traffic softened in North America.
• Q1 results showed North America weakness, with revenue down 3% and comparable sales down 6%, while management said recent negative brand commentary hurt traffic and some product launches underperformed expectations.
• Margins were pressured by tariffs, markdowns, and higher operating costs; Q1 gross margin fell 410 basis points year over year, and management expects another 410-basis-point decline in Q2.
• China remained a bright spot, with Q1 revenue up 30% (23% constant currency) and management still expecting about 20% growth for the full year despite a late-quarter slowdown tied to brand noise.
• The company is leaning on a broader action plan to restore momentum, including more marketing spend, faster product chase capabilities, SKU reductions in stores, and enterprise efficiency initiatives to improve speed and execution over time.

lululemon athletica Trading Down 0.9%

NASDAQ LULU opened at $124.92 on Friday. The company has a fifty day simple moving average of $142.08 and a 200 day simple moving average of $170.35. lululemon athletica has a 12-month low of $116.63 and a 12-month high of $338.49. The company has a market cap of $15.08 billion, a P/E ratio of 9.39, a PEG ratio of 3.89 and a beta of 0.87.

Insider Buying and Selling at lululemon athletica

In related news, CEO Andre Maestrini acquired 3,275 shares of the company’s stock in a transaction on Wednesday, April 1st. The shares were acquired at an average cost of $151.02 per share, for a total transaction of $494,590.50. Following the purchase, the chief executive officer owned 34,551 shares in the company, valued at approximately $5,217,892.02. The trade was a 10.47% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Nicole Neuburger sold 622 shares of the firm’s stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $161.00, for a total value of $100,142.00. Following the transaction, the insider owned 19,156 shares in the company, valued at approximately $3,084,116. This trade represents a 3.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On lululemon athletica

Several large investors have recently bought and sold shares of LULU. Uniplan Investment Counsel Inc. bought a new position in lululemon athletica during the 4th quarter valued at $26,000. DV Equities LLC bought a new position in lululemon athletica during the 4th quarter valued at $31,000. GW&K Investment Management LLC lifted its stake in lululemon athletica by 70.3% during the 4th quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer’s stock valued at $39,000 after acquiring an additional 78 shares in the last quarter. Quattro Advisors LLC bought a new position in lululemon athletica during the 4th quarter valued at $46,000. Finally, Golden State Wealth Management LLC lifted its stake in lululemon athletica by 43.6% during the 4th quarter. Golden State Wealth Management LLC now owns 280 shares of the apparel retailer’s stock valued at $58,000 after acquiring an additional 85 shares in the last quarter. 85.20% of the stock is currently owned by institutional investors.

Key lululemon athletica News

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: lululemon beat first-quarter expectations, reporting EPS of $1.69 versus $1.67 expected and revenue of $2.47 billion versus $2.43 billion expected, showing the business is still growing despite the slowdown. lululemon athletica inc. Announces First Quarter Fiscal 2026 Results
• Positive Sentiment: International momentum, especially in China, remains a bright spot and could partially offset weakness in North America if the trend continues. Lululemon Athletica Inc (LULU) Q1 2026 Earnings Call Highlights: Navigating Challenges with Strategic Growth in China
• Neutral Sentiment: Analysts are reworking price targets after the report, with some trimming valuations but still seeing upside from the current share price. Evercore target cut
• Neutral Sentiment: Sanford C. Bernstein also lowered its target, signaling that expectations are being recalibrated rather than collapsing outright. Bernstein target cut
• Negative Sentiment: Management cut full-year guidance to reflect weaker U.S. demand and higher pressures, which is the main reason investors are selling the stock. Lululemon cuts annual forecasts amid slowing demand in US
• Negative Sentiment: Second-quarter guidance also came in well below Wall Street expectations, reinforcing concerns that the turnaround will take longer than hoped. Lululemon cuts annual outlook and issues weak Q2 guidance
• Negative Sentiment: Reuters reported the shares fell sharply in premarket trading after the weak forecasts deepened worries about slowing U.S. demand, rising competition, and tariff-related costs. Lululemon slides as bleak forecasts deepen turnaround worries

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Evercore reduced their price objective on shares of lululemon athletica from $175.00 to $130.00 in a research report on Wednesday. BTIG Research reissued a “buy” rating and issued a $225.00 price target on shares of lululemon athletica in a research report on Friday, May 29th. Bank of America reduced their price target on shares of lululemon athletica from $220.00 to $200.00 and set a “neutral” rating for the company in a research report on Tuesday, March 3rd. Stifel Nicolaus reduced their price target on shares of lululemon athletica from $210.00 to $176.00 and set a “hold” rating for the company in a research report on Wednesday, March 18th. Finally, Telsey Advisory Group reduced their price target on shares of lululemon athletica from $215.00 to $175.00 and set a “market perform” rating for the company in a research report on Wednesday, March 18th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, twenty-eight have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $197.09.

About lululemon athletica

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.