- Lululemon Athletica cut FY26 revenue guidance to a decline of 5-7% and EPS guidance to $9.48-$9.73 after Q2 FY26 revenue fell 4.0% year over year to $2.42 billion, missing the $2.46 billion consensus.
- LULU hit a 52-week low and fell 2.95% as softer North American demand, increased tariffs, and weak product launches compounded the downbeat forecast.
- Q2 EPS was $2.92 against $1.79 consensus, but sales recovery remains the central operating test; consensus ratings from 29 firms are mostly Hold or Sell.
- LULU trades at 8.54x trailing and 10.74x forward earnings, with 13% of shares sold short and no dividend; about 51 hedge funds held a combined $0.61 billion stake at the end of Q2 2026.
- Analysts are split: Anton Kharitonov advises avoiding LULU until a reversal, Viktoras Karapetjanc sees a volatility trading band, and Sholanke Dele stays defensive.
Quotes
“With weak technicals and deteriorating fundamentals, I would avoid Lululemon until a clear reversal is confirmed”
“Despite near-term headwinds, I see the volatility band between $88.44 and $95.07 presenting attractive setups for growth-oriented traders”
“In this environment, I would stay defensive and wait for a clear shift in sentiment before considering any exposure”