Lululemon Athletica (LULU) Stock Forecast & Price Target

Lululemon Athletica is benefiting from new products that resonate strongly with consumers, suggesting its assortment refresh is translating into stronger demand and a quicker-than-expected inflection in sales. A particularly meaningful improvement in its casual assortment could broaden appeal beyond core athletic wear, supporting faster top-line growth and reinforcing the company’s premium brand positioning across women, men, and girls. With a diversified omnichannel model spanning digital sales, more than 800 company-owned stores in about two dozen countries, and about 45 franchised locations, Lululemon has a wide platform to convert product momentum into sustained fundamental strength.

Lululemon Athletica is facing a weakening demand backdrop, with soft consumer response to new products, negative brand sentiment, and traffic pressure driving a materially reduced FY26 outlook across all regions. Management now expects total revenue of $10.35 billion to $10.5 billion and EPS of $9.48 to $9.73, while 3Q guidance of $0.93 to $0.98 EPS and $2.29 billion to $2.32 billion revenue signals continued near-term deterioration. The outlook is further pressured by intensifying competition, China weakness, higher markdowns, gross margin and operating margin contraction, and uncertainty around a CEO transition that limits visibility into when earnings may bottom.