Lululemon's (LULU) Shares Tumble Amid Tariff Concerns

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Apr 03, 2025
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  • Lululemon's stock faces a significant pre-market decline due to new US tariffs.
  • Wall Street maintains a positive outlook with an average price target of $369.04.
  • GuruFocus estimates a substantial upside potential with a predicted GF Value of $525.05.

Lululemon Athletica Inc. (NASDAQ: LULU) encountered a sharp pre-market drop of 15% following President Trump's recent tariff announcements on US imports. As an apparel company with substantial Asian market exposure, Lululemon finds itself, along with similar firms, navigating potential growth obstacles. The introduction of heightened tariffs on regions such as Vietnam poses a potential threat to their competitive edge and market standing.

Wall Street Analysts Forecast

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According to the projections from 30 analysts, Lululemon Athletica Inc. (LULU, Financial) carries an average one-year price target of $369.04. The estimates range from a high of $500.00 to a low of $194.00, suggesting an optimistic outlook with a potential upside of 44.48% from the current price of $255.43. For a deeper dive into these projections, visit the Lululemon Athletica Inc (LULU) Forecast page.

The consensus analysis from 34 brokerage firms gives Lululemon Athletica Inc. (LULU, Financial) an average brokerage recommendation of 2.3, signifying an "Outperform" status. This evaluation follows a scale from 1 to 5, where 1 indicates a Strong Buy and 5 represents a Sell.

Further adding to the optimistic outlook, GuruFocus' estimates project the GF Value of Lululemon Athletica Inc. (LULU, Financial) in one year to be $525.05. This estimate suggests a substantial upside of 105.56% from the existing price of $255.43. The GF Value is GuruFocus' fair value estimate, derived from historical trading multiples, past growth trajectories, and future business performance forecasts. For more comprehensive insights, check out the Lululemon Athletica Inc (LULU) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.