LuLulemon Athletica (US) (LULU) Buy, Sell or…

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LuLulemon Athletica (US) (LULU)

120.81

+5.81 (5.05%)

as of Aug 28, 2026, 8:00:00 pm Market Open.

188 watching

Investor Insights

Aug 30, 2026, 12:00 am

This summary was created by AI, based on 20 opinions in the last 12 months.

Lululemon Athletica (LULU) is facing significant challenges amid a broader downturn in the leisurewear sector, compounded by increased competition and internal management issues. While some investors hold out hope for recovery under new leadership, recent performance indicates a troubling trend, as sales in North America have declined and earnings forecasts have been slashed. Market sentiment remains tepid, with many expressing caution about the company's direction and the long-awaited turnaround. The stock, currently trading at low multiples, is seen as a potential speculative opportunity, but uncertainties about brand uniqueness and market dynamics persist, leading to a mixed outlook for its future.

Consensus

Negative

Valuation

Undervalued

Similar

GAP, GPS

DON'T BUY

Lululemon stated that an 84% increase in inventory year-over-year was planned, but he doesn't believe that. The stock is paying forward now, because valuations matter and margins contract.

DON'T BUY

Lululemon vs. Costco LULU was overestimated vs. Costo being underestimated. LULu shares were killed today after earnings. There have been constant price target hikes for LULU. Today, Lulu saw strong growth in the US and China. Men's sales are gaining speed. BUT it trades at 38x earnings. Investors expected a flawless quarter, but wasn't. There was a little more inventory than expected, and U.S. sales were a tad light. Main problem is that LULU shares shot up before the quarter, so the market mercilessly sold today. It plunged 12.85% today and will likely sell off another day. Wait to see if selling abates on Tuesday. Costco is the total opposite. It has fallen 15% from its August high. They just delivered a good quarter and met expectations, and will pay a special dividend. Owns a big position in Costco. They provide the best merchandise at the lowest price, and they don't overexpand.

COMMENT

They continue to execute and their stores are crowded with customers, so maybe they'll hold their high multiple. Likes the company.

BUY

It seemed like a Covid play with a bleak future after Covid (look at Peloton). Today, they announced a new service called Lululemon Studio which allows customers online and in-person fitness instruction. Could this hybrid be the future?

SELL

Powell's speech on Wednesday was a shift. You can no longer feel that the consumer and earnings are strong. Instead, there is a lot of uncertainty. The markets know inflation will remain stubbornly high and so will yields to combat inflation. Earnings revisions will come down. He sold this because the consumer will face some challenges, and he needs to protect profits. Today is a classic liquidation day.

BUY ON WEAKNESS

She would love to buy Lulu, down $150, though still not cheap because its PE is around 30x and she wants to see 20-25x.

STRONG BUY

It's about to re-take its 200-day moving average at $388. They're riding momentum; they just announced a very strong quarter and put to rest supply chain worries. They introduced women's footwear to challenge Nike. We will see men's footwear in early 2023. He bought this in the late-February sell-off and is happy to hold this as it returns to all-time highs of $485. He also wears their clothes.

BUY

options Their footwear line is exciting, and is going after Nike or Addidas. Their direct-to-consumer model is very strong. The footwear will be a multibillion part of their business. Loves it. He sold out his April 350s and rolled them out to the May 370s. So, he's hanging on and hopes shares blast through $388 into the $400s.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Feb 10/22, Down 11.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LULU has triggered its stop at $300. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 6%, when combined with the previous recommendation to cover half the position.

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Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly We again reiterate this Vancouver based stretchy pant manufacturer as a TOP PICK. Recently reported revenues beat expectations by 14% and managed a ROE of 34%. We like that the company continues to increase cash reserves, while buying back shares. As the pandemic lifts, the wellbeing of Gen Z will recover sharply (it is expected) and that will fuel further demand growth. We recommend trailing up the stop (from $250) to $300, looking to achieve $448 -- upside potential over 31%. Yield 0% (Analysts’ price target is $447.64)

PAST TOP PICK

(A Top Pick Oct 21/20, Up 29%) Valuations are getting stretched. Demand for activewear continues to move higher. European expansion is slow. Expanding product line going up against the likes of Nike. He'll probably pare down soon.

BUY ON WEAKNESS

They've been open about supply chain disruption. The whole sector is out of fashion, but when it returns, this is the first to buy. Buy below $400

PAST TOP PICK

(A Top Pick Oct 21/20, Up 29%) Cautious on the name at this point. Doing well. Opportunity lies in China. In US, highest sales per square foot than any retailer. Its expanding product line puts it face to face with giant Nike. Rich valuation. He's not adding now.

BUY

Fine operating margin growth. Their brand is strong. As revenues soared, they leveraged their expenses which resulted in wide operating margins. They had supply constraints, so their quarter would have been even better. They will hit their 2023 goals in 2022, they said. Amazing. It is and should be at an all-time highs. Sadly, she no longer owns this. Bummer.

BUY

Ridiculous. Operating margins came in at 20.6% vs. the street's 15.9%, up from 13.6% a year ago. Growth is off the charts, and inventories are in line to suggest that margins will be even better next quarter. The only knock on them is their valuation, which he feels is unwarranted. Sure, this could trade at $475, the new price target.

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LuLulemon Athletica (US) (LULU)