TLDR
- Lululemon reports Q1 FY26 earnings after market close on June 4, with Wall Street expecting EPS of $1.68 — down 35.3% year-over-year
- Revenue is forecast to rise about 2.5% to $2.43 billion
- LULU stock is down more than 39% year-to-date, weighed down by competition, tariff costs, and soft consumer spending
- Options traders are pricing in roughly a 10% move in either direction post-earnings
- Wall Street consensus is a Hold, with an average price target of $169.53 — about 34.5% above current levels
Lululemon Athletica (LULU) reports fiscal Q1 FY26 results after the bell today, June 4. The stock is trading around $126, down over 39% year-to-date, and the Street isn’t exactly holding its breath for a breakout quarter.
Lululemon Athletica Inc., LULU
Analysts expect earnings per share of $1.68 — a 35.3% drop from the same period last year. Revenue is projected to come in at $2.43 billion, which would be a modest 2.5% year-over-year increase.
The soft EPS outlook reflects ongoing pressure from tariff-related costs and weaker demand in the U.S. market. Consumer spending on discretionary items has been under pressure, and Lululemon hasn’t been immune.
The company resolved one distraction ahead of the print, settling its proxy fight with founder Chip Wilson by agreeing to two board nominations. That removes some noise going into the report.
What Analysts Are Watching
Evercore’s Michael Binetti cut his price target to $130 from $175 and kept a Hold. He flagged the risk of a “big reset” to full-year FY26 guidance as the main concern, even as he acknowledged the stock’s valuation has become more attractive.
Raymond James analyst Rick Patel also reiterated a Hold. He expects Q1 results to beat the company’s own conservative guidance, pointing to sequential improvement in foot traffic and website traffic. But not all of his checks were positive — mobile app monthly users showed a slowdown.
Patel is watching whether new products can reignite demand. The January launch of the Get Low line didn’t land well with customers. However, his checks show more encouraging signals for the Unrestricted Power and ShowZero ranges. He’s cautiously optimistic but not convinced these are game-changers yet.
“Net, we see potential for estimates to increase but believe it’ll take more time for LULU to earn confidence that this is the beginning of a durable turnaround,” Patel said.
Valuation and Insider Activity
LULU’s P/E ratio sits at 9.37x, well below its historical averages. The forward P/E of 10.13 suggests the market is pricing in continued slow growth.
GF Score stands at 77/100, with profitability and growth both rated 10/10. Financial strength is 6/10, and momentum is rated F — reflecting the stock’s poor price performance this year.
Insiders have been buying. Two transactions over the past three months totaled 9,365 shares purchased, which could signal some internal confidence despite the broader headwinds.
Options traders are pricing in a 10% move in either direction following the report. For context, LULU’s average post-earnings move over the past four quarters has been 12.95% in absolute terms.
Wall Street’s consensus is a Hold, based on 20 Hold ratings and one Buy. The average price target of $169.53 implies roughly 34.5% upside from current levels.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
