Lululemon Stock's Price Troubles Continue After Earnings
Lululemon stock is lower Friday after the company's second-quarter revenue came up short and it cut its full-year outlook.


Lululemon Athletica (LULU) stock is trading lower Friday after the athleisure apparel company reported second-quarter results that were mixed compared with analysts' expectations and lowered its full-year outlook.
In the quarter ended July 28, Lululemon's revenue increased 7.3% year-over-year to $2.37 billion, driven by a 29% pop in international sales. Its earnings per share (EPS) were up 17.5% from the year-ago period to $3.15.
"In the second quarter, Lululemon delivered revenue and earnings growth, with ongoing strength across our international business," said Lululemon CEO Calvin McDonald in a statement. "In the U.S., our teams continue to optimize our product assortment and remain focused on driving forward our opportunities in the market."

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 were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $2.41 billion and earnings of $2.93 per share, according to CNBC.
As a result of "uncertainties in the macro environment," as management mentioned in the earnings call, Lululemon slashed its full-year outlook. The company now anticipates revenue in the range of $10.375 billion to $10.475 billion and earnings per share of $13.95 to $14.15. It had previously forecast revenue to arrive between $10.7 billion to $10.8 billion and EPS of $14.27 to $14.47.
For the third quarter, Lululemon said it is guiding for revenue of $2.34 billion to $2.365 billion and earnings per share in the range of $2.68 to $2.73.
Is Lululemon stock a buy, sell or hold?
Lululemon Athletica has vastly underperformed the broad market in 2024, down 50% for the year to date vs the S&P 500's 18% gain. But Wall Street remains bullish on the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for LULU stock is $322.20, representing implied upside of more than 25% to current levels. Meanwhile, the consensus recommendation is a Buy.
Financial services firm Stifel is one of the more bullish outfits on LULU stock with a Buy rating and $370 price target.
"We see LULU uniquely positioned at the intersection of secular trends and believe international growth contribution is under-appreciated in shares," says Stifel analyst Jim Duffy. The analyst anticipates "multiple years of mid-teens plus revenue growth and margin expansion," which he believes will be complemented by stock buybacks.
"While [the] risk/reward assessment presumes ongoing strength, the bias remains to the upside, and we continue to view LULU shares as a solid core holding for growth investors," Duffy adds.
Related Content
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.
-
Suze Orman's Number One Retirement Mistake
Interview Find out what Suze Orman thinks costs people thousands of dollars in retirement.
-
Social Security at 90: How Old Tax Rules Still Cost Retirees Thousands in 2025
Retirement Taxes Could the Social Security 90th anniversary be a good time to revisit outdated tax thresholds?
-
Don't Be a Sucker: The Truth About Guarantor and Cosigner Agreements
There are significant financial and relationship risks involved if you agree to be a cosigner or guarantor. Make sure you perform your due diligence, and know exactly what you're getting into, before agreeing to such a commitment.
-
The Hidden Risk Lurking in Most Retirement Plans: Human Behavior
What's one of the differences between a good financial adviser and a great one? The ability to use behavioral coaching to guide clients away from emotional decision-making and toward retirement success.
-
Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers
Rather than focusing only on financial plans, you can better serve your clients — and grow your business — by learning what to say and do when a client gets anxious or emotional.
-
Stocks Struggle Ahead of Busy Fed Week: Stock Market Today
The minutes from the July Fed meeting will be released Wednesday, while Chair Powell will deliver a key speech at Jackson Hole on Friday.
-
Is Crypto Investing Coming to a Credit Union Near You?
Credit unions are getting in on crypto investing through partnerships with third-party platforms, but the risks to investors still apply.
-
Seven Hidden Downsides of Dividend Investing, From a Financial Adviser
Dividend investing could be draining your wealth with unexpected costs and limited growth potential. Here are some downsides, along with smarter strategies to take control of your retirement income.
-
How to Position Your Business for a Lucrative Exit Despite Private Equity's Slowdown
As private equity firms seek strongly performing companies, crafting a narrative about your business' high-quality assets and future opportunities can make a lucrative sale possible.
-
Don't Regret Buying a Home: An Expert Guide to Navigating Today's Tough Housing Market
Whether you're a first-time buyer, want to upsize/downsize or move closer to work or family, it's critical to stay within your budget and have an emergency fund.