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lululemon athletica inc. (LULU), headquartered in Vancouver, Canada, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. Valued at $14.5 billion by market cap, the company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness.
Shares of this athletic apparel giant have significantly underperformed the broader market over the past year. LULU has declined 63.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23.3%. In 2026, LULU stock is down 42.6%, compared to the SPX’s 7.4% rise on a YTD basis.
Narrowing the focus, LULU’s underperformance is also apparent compared to the VanEck Retail ETF (RTH). The exchange-traded fund has gained about 10.7% over the past year. Moreover, the ETF’s 5.9% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.
LULU’s underperformance stems from North America softness, where weak store traffic, higher markdowns, and 500+ bps of tariff pressure drove flat sales and margin compression. Its ongoing investments in marketing, labor, and tech will keep operating margins pressured as management works to offset tariff headwinds and reset the U.S. business.
For fiscal 2026, ending in January 2027, analysts expect LULU’s EPS to decline 7.2% to $12.30 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 31 analysts covering LULU stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, 26 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
The configuration has been consistent over the past months.
On May 8, Ike Boruchow from Wells Fargo & Company (WFC) maintained a “Hold” rating on LULU, with a price target of $150, implying a potential upside of 25.8% from current levels.
The mean price target of $182.33 represents a 52.9% premium to LULU’s current price levels. The Street-high price target of $320 suggests an ambitious upside potential of 168.4%.
