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Vancouver-based Lululemon Athletica Inc. (LULU) stands as a premier name in athletic apparel and accessories, with a market cap of $37.4 billion. Known for its commitment to quality and performance, Lululemon offers a versatile array of products tailored for active lifestyles—from yoga pants to high-performance running gear—all designed to blend comfort with functionality. The company is set to announce its fiscal Q3 earnings results on Thursday, Dec. 5.
Ahead of the event, analysts expect LULU to report a profit of $2.73 per share, up 7.9% from $2.53 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in each of its last four quarterly reports. Lululemon's adjusted earnings of $3.15 per share for the last quarter surpassed the consensus estimate by 7.9%, thanks to strength across its international business.
Analysts expect LULU to report EPS of $14.02 in fiscal 2025, up 9.8% from $12.77 in fiscal 2024.
LULU’s stock has declined 40.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.3% gains and the Consumer Discretionary Select Sector SPDR ETF’s (XLY) 12% returns over the same time frame.
The pronounced weakness in LULU’s core American markets, shifting consumer preferences, and intensifying industry competition have weighed on its market performance in 2024. Investor sentiment has further dampened following setbacks with its Breeze Through leggings, which were pulled from shelves amid widespread customer complaints regarding design and comfort issues.
However, the stock increased marginally after its Q2 earnings release on Aug. 29. The company reported earnings of $3.15 per share, which surpassed Wall Street estimates of $2.92 per share. However, its revenue of $2.37 billion missed estimates of $2.40 billion.
The consensus opinion on LULU stock is reasonably optimistic, with an overall “Moderate Buy” rating. Out of the 28 analysts covering the stock, 13 advise a “Strong Buy” rating, two recommend a “Moderate Buy,” 10 suggest a “Hold,” one advises a “Moderate Sell,” and two recommend a “Strong Sell.”
LULU’s average analyst price target is $315.55, indicating a potential upside of 3.5% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
