What Wall Street Analysts Think About Lululemon Stock Ahead of Earnings

Lululemon Athletica (LULU) is expected to report third-quarter results after the closing bell on Thursday, with Wall Street analysts expecting revenue and net income to rise year-over-year.

Analysts generally rate the stock positively. Of the 21 brokers analyzing Lululemon tracked by Visible Alpha, 13 have a “buy” or equivalent rating on the athletic apparel company, compared to seven that maintain their “hold” rating and just one that has a “sell.” Still, the consensus price target for Lululemon is $325.50, below today’s closing price of around $334.

Analysts expect Lululemon’s quarterly revenue to rise nearly 7% year over year to $2.35 billion. Net income is expected to rise to $333.5 million, or $2.69 per share, from $248.7 million, or $1.96 per share, a year ago.

According to the CEO, Lululemon is working on updating its product range

In August, Lululemon Chief Executive Officer (CEO) Calvin McDonald acknowledged a “recency issue” as customers hoped for more seasonal updates on “colors, prints, patterns and silhouettes” across some Lululemon product categories. When the company reported its second-quarter results, it reported a 3% decline in U.S. comparable store sales.

McDonald said at the time that Lululemon was working to update its assortment “as quickly as possible,” adding that the company expected to “return to our historical levels of newness no later than spring 2025.”

Lululemon shares rose more than 4% on Monday but have lost about a third of their value in 2024.