Core Insights - Lululemon Athletica Inc. is set to release its quarterly earnings on December 11, 2025, with analysts predicting an EPS of $2.22 and revenue of approximately $2.48 billion [1][6] - The company's stock price has decreased significantly, yet it continues to show strong financials and free cash flow, with a growth rate of 7-8% [2][6] - Lululemon has a history of exceeding earnings expectations, achieving an average earnings surprise of 4.77% over the last two quarters [3][6] Financial Performance - The upcoming earnings report anticipates a 22.7% decline in EPS year-over-year, while revenue is projected to increase by 3.8% to $2.49 billion [4] - Analysts have maintained their consensus EPS estimate over the past month, indicating stability in expectations [4] - Lululemon's financial metrics include a P/E ratio of approximately 12.21 and a price-to-sales ratio of about 1.90, reflecting the market's valuation of its earnings and revenue [5] Debt and Liquidity - The company's debt-to-equity ratio stands at 0.40, suggesting a moderate level of debt [5] - A current ratio of 2.27 indicates Lululemon's ability to cover short-term liabilities [5]

In the last year, if you have held lululemon athletica inc. ( LULU ) shares, you have seen your holdings halved in value. You are not alone, since Puma's (I’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and high returns on invested capital—is a more reliable driver of returns ...

Group 1 - Lululemon Athletica Inc. (LULU) shares have halved in value over the last year, indicating significant market challenges for the company [1] - The investment strategy emphasizes sustained profitability through strong margins, stable and expanding free cash flow, and high returns on invested capital as more reliable drivers of returns than valuation alone [1] - The author manages a portfolio on eToro, highlighting a focus on undervalued growth stocks and high-quality dividend growers [1] Group 2 - The article does not provide any specific financial metrics or performance data related to Lululemon or Puma [1]

Core Insights - lululemon athletica inc. (LULU) is facing a cautious consumer environment in fiscal 2025, raising concerns about its pricing power amidst softer spending [1] - The U.S. market is under pressure, with key casual franchises experiencing stagnation, leading to increased markdowns and reduced product margins [2] - To counteract rising costs, lululemon is implementing modest price increases on select styles while carefully assessing price elasticity [3][4] Pricing Strategy and Market Position - Pricing is one of several strategies being employed, including vendor negotiations and supply-chain efficiencies, to manage costs and protect margins [4] - The company anticipates a 220-basis-point hit to gross margin in fiscal 2025 due to tariffs, with a projected $320 million impact in fiscal 2026 [4] - The effectiveness of lululemon's pricing power will depend on its ability to innovate and refresh its product assortment, with plans to increase new styles from 23% to 35% by next spring [5][6] Competitive Landscape - Competitors like Crocs Inc. (CROX) and Ralph Lauren Corporation (RL) are also leveraging pricing power to maintain margins in a value-driven market [7] - Crocs is managing pricing based on brand strength and market dynamics, while also focusing on innovation to support higher average selling prices [8] - Ralph Lauren has demonstrated resilient pricing power through consistent average unit retail gains and effective brand elevation strategies [9] Financial Performance and Outlook - lululemon's shares have increased by 11.7% over the past three months, contrasting with a 1.1% decline in the industry [10] - The Zacks Consensus Estimate indicates an 11.8% year-over-year decline in fiscal 2025 earnings, with a slight growth of 1.2% expected in fiscal 2026 [13] - Current forward price-to-earnings ratio for LULU is 14.04X, lower than the industry average of 16.22X [12]

24/7 Wall St. Quick Read Lululemon stock fell 62% from $414 to $160 between January and November despite beating earnings in 8 of 10 quarters. The company trades at 12.5x earnings with 42.4% ROE and 16.4% profit margins. Insiders sold shares at $178 with no buying activity during the decline. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here Lululemon ...

Group 1: Fund Performance - Vision Capital Fund reported a net return of +15.6% year-to-date in Q3 2025, outperforming the S&P 500's +14.8% for the same period [1] - Since its inception on October 1, 2024, the fund has achieved a cumulative return of +27.8% net, compared to +17.6% for the S&P 500 [1] Group 2: Lululemon Athletica Inc. Overview - Lululemon Athletica Inc. (NASDAQ:LULU) has a one-month return of 7.79% but has lost 53.91% of its value over the last 52 weeks [2] - As of December 08, 2025, Lululemon's stock closed at $183.04 per share, with a market capitalization of $21.937 billion [2] Group 3: Lululemon's Financial Performance - Lululemon reported weak earnings in Q1 2025 and Q2 2025, with revenue growth of only +7% in Q2 2025 [3] - The company faces challenges in its core US market, which accounts for approximately 56% of revenues, showing subdued growth of +0% year-over-year [3] - Despite these challenges, Lululemon is outperforming larger competitors like Nike by -7% and is gaining market share [3] - China, contributing around 16% of revenues, remains a strong growth driver, although the FY25 revenue growth guidance was reduced from +30% to +25% [3] Group 4: Hedge Fund Interest - Lululemon is not among the 30 most popular stocks among hedge funds, with 42 hedge fund portfolios holding the stock at the end of Q3, down from 45 in the previous quarter [4] - While Lululemon is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Viewpoint - The article emphasizes the significance of the upcoming earnings season in December for U.S. stocks, highlighting the potential for significant stock price volatility and the effectiveness of options as a tool for investors to amplify returns during this period [1][2]. Earnings Calendar - A detailed schedule of key U.S. companies' earnings releases for December 2025 is provided, including companies like AutoZone, GameStop, Adobe, and Nike, with specific dates and times for earnings announcements [1][2]. Options Strategies - The article outlines five classic options strategies that can be employed during earnings season: - **Buy Call**: A strategy for bullish investors expecting significant price increases [4][6]. - **Bull Call Spread**: A moderate bullish strategy with limited upside potential [7]. - **Buy Put**: A strategy for bearish investors anticipating significant price declines [9]. - **Bear Put Spread**: A moderate bearish strategy with limited downside potential [11]. - **Long Straddle**: A strategy for investors expecting high volatility in either direction [13]. Strategy Details - Each strategy includes specific scenarios for application, initial costs, potential returns, and risk profiles: - **Buy Call**: High potential returns with unlimited upside and maximum loss equal to the premium paid [6]. - **Bull Call Spread**: Limited risk and reward, with a defined maximum profit and loss [7]. - **Buy Put**: Limited maximum profit with a defined risk equal to the premium paid [9]. - **Bear Put Spread**: Similar to the Buy Put but with reduced risk and capped profit [11]. - **Long Straddle**: Captures significant price movements in either direction, with defined risk limited to the total premium paid [13]. Trading Considerations - The article advises investors to focus on the breakeven points of their strategies and to select options with sufficient time until expiration to avoid liquidity issues and time decay [4][6].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Lululemon Athletica Inc (NASDAQ:LULU) stock is sliding ahead of the athletic retailer's third-quarter earnings report, due out after the close Thursday, Dec. 11. Jeffries expects disappointing results, reiterating its "underperform" rating and slashing its price target to $120 today. The firm cited shrinking margins, pricing pressures, and competition from Alo Yoga, pushing the shares down 4.8% to trade at $180.80 at last glance. On the charts, LULU has yet to recover from its September 5 post-earnings bear ...

Key Takeaways LULU expects Q3 sales to rise 3.8% y/y, even as earnings are projected to fall sharply.Persistent U.S. weakness, higher tariffs and markdowns are set to pressure margins in the quarter.International markets, led by Mainland China, are forecast to deliver strong double-digit growth.lululemon athletica inc. (LULU) is likely to witness top-line growth when it reports third-quarter fiscal 2025 results on Dec. 11, after market close. The Zacks Consensus Estimate for fiscal third-quarter sales is pe ...