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With a market cap of $44.7 billion, Lululemon Athletica Inc. (LULU) is a premium athletic apparel company known for its high-quality yoga, running, and training gear. Founded in 1998 and headquartered in Vancouver, Canada, Lululemon has built a strong brand with a loyal customer base by emphasizing innovation, technical fabrics, and an active lifestyle.
Shares of Lululemon Athletica have dipped 17.2% over the past 52 weeks and 2.6% on a YTD basis, trailing behind the broader S&P 500 Index ($SPX), which rallied 22.5% over the past year and returned 4.2% in 2025.
Narrowing the focus, LULU also underperforms the VanEck Retail ETF’s (RTH) 20.3% returns over the past year and 6.7% gains on a YTD basis.
Lululemon’s stock popped 15.9% on Dec. 5 following its Q3 earnings release. Its EPS of $2.87 topped Wall Street expectations of $2.69. The company’s revenue was $2.40 billion, topping Wall Street forecasts of $2.35 billion. While Americas sales grew modestly by 2%, international net revenue soared 33%, driving an 8.7% year-over-year increase in total revenue to $2.4 billion, 1.8% above consensus estimates.
Building on this strength, Lululemon raised its Q4 revenue guidance to $3.56 billion–$3.58 billion, up from its previous range of $3.48 billion–$3.51 billion. The company also lifted its EPS forecast to $5.81–$5.85, compared to its earlier projection of $5.56–$5.64.
For the fiscal year that ended in January 2025, analysts expect Lululemon’s EPS to rise 12.5% year over year to $14.36. Moreover, the company's earnings surprise history is robust, as it beat the consensus estimates in each of the last four quarters.
Among the 30 analysts covering LULU stock, the overall consensus is a “Moderate Buy.” The current rating is based on 14 “Strong Buy” ratings, three “Moderate Buys,” 10 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration is slightly more bullish than two months ago when it had 13 “Strong Buy” ratings.
On Feb. 7, Oppenheimer Holdings Inc. (OPY) raised its price target on Lululemon to $500 from $380 while maintaining an “Outperform rating. The firm sees strong operational and financial discipline, along with improving merchandising, as key drivers of continued growth. Despite the stock no longer being "cheap," Oppenheimer believes its valuation remains reasonable given the strengthening fundamentals. Lululemon remains a top pick within the firm's Consumer Growth and e-commerce coverage.
Lululemon’s average price target of $408.63 indicates a premium of 9.7% from the current market prices. The Street-high target price of $500 suggests an upside potential of 34.2%.
