Lululemon Jumps to the Top of the S&P 500 After Earnings. Here's Why
Lululemon stock is soaring Friday after the athletic apparel retailer's beat-and-raise quarter.


Lululemon Athletica (LULU) is the best S&P 500 stock Friday after the athleisure retailer beat top- and bottom-line expectations for its fiscal third quarter and raised its full-year outlook.
In the quarter ended October 27, Lululemon's revenue increased 8.7% year over year to $2.4 billion, driven by a 33% surge in international revenue. Its earnings per share (EPS) were up 13.4% from the year-ago period to $2.87.
"Our performance in the third quarter shows the enduring strength of Lululemon globally, as we saw continued momentum across our international markets and in Canada," said Lululemon CEO Calvin McDonald in a statement. "Looking to the future, we are pleased with the start to our holiday season, and we remain focused on accelerating our U.S. business and growing our brand awareness around the world."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $2.36 billion and earnings of $2.69 per share, according to CNBC.
As a result of its strong performance in the third quarter, Lululemon raised its full-year outlook. Here's what the company now expects to accomplish in its fiscal year compared to its previous forecast:
Metric | Updated outlook | Prior outlook |
---|---|---|
Revenue | $10.452 billion to $10.487 billion | $10.375 billion to $10.475 billion |
Earnings per share | $14.08 to $14.16 | $13.95 to $14.15 |
The new outlook came in ahead of analysts' expectations. Specifically, Wall Street is forecasting revenue of $14.44 billion and earnings of $13.97 per share.
For its fiscal fourth quarter, Lululemon said it anticipates revenue in the range of $3.475 billion to $3.51 billion and earnings per share of $5.56 to $5.64. Analysts are guiding for revenue of $3.5 billion and earnings of $5.59 per share.
Is Lululemon stock a buy, sell or hold?
Lululemon had a rough start to 2024, but shares bottomed over the summer and have been trending higher since. And Wall Street thinks brighter days are in store for the consumer discretionary stock. According to S&P Global Market Intelligence, the consensus recommendation among the 36 covering analysts it tracks is a Buy.
However, analysts' price targets have failed to keep up with the recent surge in LULU’s stock. Indeed, shares are up nearly 16% today and more than 70% since August 1. The average price target of $356.38 sits at a discount to current trading levels which could prompt some price-target hikes if the retail stock's rally continues.
William Blair analyst Sharon Zackfia is one of those with an Outperform (Buy) rating on Lululemon "given the strength of the brand, international momentum, and significant opportunity to grow domestic brand awareness."
The analyst says that "efficiencies and benefits from changes to its product organization to better balance design and merchandising" have Lululemon "on track to return to historical levels of product freshness no later than spring 2025." She also calls the company's fourth-quarter guidance "conservative" and "beatable."
Related Content
- Analysts' Top S&P 500 Stocks to Buy Now
- Earnings Calendar and Analysis
- Why Analysts Say Five Below Is a Buy After Earnings
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
Keep Tax Collectors at Bay with Muni Bond Funds
Municipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the Fairway
Think of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
Just Sold Your Business? Avoid These Five Hasty Moves
If you've exited your business, financial advice is likely to be flooding in from all quarters. But wait until the dust settles before making any big moves.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Bonds Right Now?
Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.