Lululemon Athletica, known for premium athletic wear, has expanded beyond yoga to running, training, and lifestyle segments. Established in 1998 in Vancouver, the company operates over 700 stores globally.

Despite recent underperformance, Lululemon reported Q2 2025 earnings per share of $3.10, beating estimates. Total revenue increased 7% YoY to $2.53 billion. However, shares dropped 17% post-report due to a weaker outlook and margin pressures.

Lululemon’s international revenue growth offers a potential recovery path despite soft U.S. demand. Operating income decreased 3% to $524 million, with gross margins at 58.5%. The company maintains healthy cash reserves and emphasizes digital sales growth.

Guidance for fiscal 2025 has been adjusted lower by Lululemon, focusing on U.S. business improvement, product innovation, and international expansion. Bernstein downgraded the stock, citing uncertainty around a new product revamp.

Analysts express concern over Lululemon’s new collection and U.S. market challenges. The company’s core market faces stiff competition and merchandising missteps, impacting sales trends. Bernstein projects low single-digit earnings growth and reduced price target.

Lululemon’s stock rating shifts from “Moderate Buy” to “Hold” with a mean price target of $189.42. Analysts provide varied ratings, including three “Strong Buy,” 24 “Hold,” two “Moderate Sell,” and two “Strong Sell” ratings.

Read more at Yahoo Finance: It’s ‘Hard to Have Conviction’ in Lululemon Stock Right Now, According to Analysts. Should You Sell LULU Here?