Lululemon (LULU, Financial) shares fell 12% in premarket trading as the company's latest earnings outlook failed to impress investors, despite reporting better-than-expected quarterly profits. The athletic apparel maker attributed its cautious forecast to sluggish store traffic and potential risks from U.S. tariffs. Analysts expressed mixed views; while some maintained a negative outlook, others expect modest declines unless U.S. sales trends improve. Concerns persist that Lululemon may need to rely on discounting due to inventory increases, potentially impacting margins. The company anticipates a drop of 100 basis points in operating profit margins by 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Lululemon Athletica Inc (LULU, Financial) is $385.59 with a high estimate of $500.00 and a low estimate of $194.00. The average target implies an upside of 31.75% from the current price of $292.67. More detailed estimate data can be found on the Lululemon Athletica Inc (LULU) Forecast page.
Based on the consensus recommendation from 34 brokerage firms, Lululemon Athletica Inc's (LULU, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lululemon Athletica Inc (LULU, Financial) in one year is $534.12, suggesting a upside of 82.5% from the current price of $292.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lululemon Athletica Inc (LULU) Summary page.
