Overview
- Shares trade near $160, roughly 70% below the peak, reflecting a valuation reset tied to softer U.S. demand.
- FQ2 2026 delivered $2.5 billion in revenue, up 7% year over year, with EPS of $3.10, a 58.5% gross margin, and a 20.7% operating margin.
- Lululemon cut its full-year outlook to $10.85–$11.0 billion in revenue and $12.77–$12.97 in EPS after falling short of prior guidance.
- Americas revenue rose 1% with store comps down 3% on a constant-dollar basis, while China grew 24% and other international markets increased 15%, bringing non-North America to about 30% of sales.
- BofA’s Lorraine Hutchinson lowered the price target to $185 and kept a Neutral rating, as some analysts and commentators, including a Seeking Alpha report, argue the lower valuation is compelling.