The athletic gear maker has been under pressure from its founder to make changes to reverse its "loss of cool.†...

VANCOUVER, British Columbia--(BUSINESS WIRE)--lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the third quarter of fiscal 2025, which ended on November 2, 2025. Calvin McDonald, Chief Executive Officer, stated: "In the third quarter, our teams remained focused on driving improvements within our U.S. business and maintaining momentum in our international regions. We are beginning to make progress against our action plan and continue to expect to see the impact of thi. ...

Core Insights - Lululemon athletica inc. is set to release its third-quarter earnings results on December 11, with analysts expecting earnings of $2.21 per share, a decrease from $2.87 per share in the same quarter last year [1] - The consensus revenue estimate for the quarter is $2.48 billion, compared to $2.4 billion reported in the previous year [1] Financial Performance - In the second quarter, Lululemon reported revenue of $2.53 billion, which was slightly below the consensus estimate of $2.54 billion [2] - Following the second-quarter report, shares of Lululemon increased by 2.9%, closing at $187.62 [2] Analyst Ratings - Guggenheim analyst Simeon Siegel initiated coverage with a Neutral rating [3] - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating with a price target of $200 [3] - BTIG analyst Janine Stichter maintained a Buy rating with a price target of $303 [3] - UBS analyst Jay Sole kept a Neutral rating and reduced the price target from $185 to $183 [3] - Baird analyst Mark Altschwager downgraded the stock from Outperform to Neutral, lowering the price target from $225 to $195 [3]

lululemon athletica inc. (NASDAQ:LULU) will release earnings results for the third quarter after the closing bell on Thursday, Dec. 11.Analysts expect the Vancouver, Canada-based company to report quarterly earnings at $2.21 per share, down from $2.87 per share in the year-ago period. The consensus estimate for lululemon's quarterly revenue is $2.48 billion. Last year, it reported $2.4 billion in revenue, according to Benzinga Pro.On Sept. 4, Lululemon reported second-quarter revenue of $2.53 billion, missi ...

Group 1 - Lululemon is experiencing challenges in maintaining relevance with shoppers and has reported a decline in demand in its largest market, North America [3][6] - The company reported a 7% increase in revenue to $2.6 billion, but sales in the Americas fell by 2%, with comparable sales down 5% in that region [3][6] - CEO Calvin McDonald is stepping down at the end of January after leading the company since 2018, during which time he helped triple annual revenues and expand internationally [4][6] Group 2 - Following McDonald's departure, CFO Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs, while Marti Morfitt will take on an expanded role as executive chair [5][6] - McDonald will receive a total of $3.05 million as part of a separation agreement, along with $2.1 million in severance and a bonus for fiscal 2025 [4] - Frank will have a salary of $950,000, a retention bonus of $1.5 million, and an equity award valued at $4 million, while Maestrini will receive a $750,000 retention bonus and a similar equity award [5]

Core Insights - The consumer discretionary sector, represented by the XLY ETF, has shown flat performance year-to-date, while Lululemon has experienced a significant decline of approximately 53% [2][3] Group 1: Market Trends - The apparel industry is facing challenges, particularly due to tariff effects impacting performance across various companies [3] - Lululemon's stock has been rangebound, with recent lows around 159 following its last earnings report [3][5] - The stock is currently near its lowest levels since 2020, with critical support identified around 168 [5] Group 2: Trading Strategy - The options market is pricing in a significant one-day move of about 10.5%, equating to approximately $20, indicating high implied volatility ahead of the earnings report [7] - A proposed trading strategy involves an unbalanced put butterfly, which allows for a credit position while providing a potential profit if the stock hovers around the 175 level [9][12] - The break-even point for this strategy is set at 166.50, with a maximum loss of about $1,650 if the stock falls below 150 [10][11]

Core Viewpoint - Lululemon Athletica has experienced a significant decline in stock performance, dropping over 50% this year, which has raised concerns about the company's direction under its current CEO, Calvin McDonald [1][2]. Group 1: Company Performance - Lululemon's stock has been one of the worst performers on the S&P 500, contrasting with the index's overall increase of nearly 17% [1]. - The company's market capitalization is currently $22 billion, with a price-to-earnings ratio of 13, significantly lower than the S&P 500 average of 25 [8][11]. - There has been a clear slowdown in Lululemon's business growth since late 2021, coinciding with rising inflation and stretched consumer budgets [8][10]. Group 2: Brand Strength and Competition - Chip Wilson, the founder of Lululemon, believes the brand has lost its appeal and is overly focused on financial metrics rather than creativity [4]. - The rise of fast fashion and cheaper alternatives has made it challenging for Lululemon to justify its premium pricing, particularly for products like leggings and pants priced over $100 [4][10]. - Lululemon has faced increased competition, exemplified by its recent lawsuit against Costco for selling knock-off products, highlighting the difficulties in protecting brand identity in the apparel industry [5]. Group 3: Future Outlook - Investors are currently concerned about the company's direction and the impact of economic conditions on future results, leading to a heavily discounted stock price [12]. - While the low valuation may present potential for strong returns, the company must first convince investors of its brand strength and growth potential [12].

Core Insights - Lululemon Athletica Inc. is a leading designer and retailer of athletic apparel, operating 574 stores globally and competing with brands like Nike and Under Armour [1] Analyst Sentiment - The average price target for Lululemon over the past month is $243, indicating positive analyst sentiment, with Morgan Stanley setting a higher target of $339, reflecting confidence in the company's earnings potential [2][6] - A year ago, the average price target was $250.54, suggesting a slight decline in optimism due to anticipated challenges in the third quarter affecting sales, margins, and EPS [4] Earnings Performance - The quarterly average price target of $189.4 indicates a shift in analyst sentiment, potentially due to Lululemon's consistent earnings surprises and the possibility of an earnings beat in the upcoming report [3] - Despite macroeconomic headwinds and eroding brand momentum noted by Jefferies, Lululemon's strong brand and pricing power, particularly in the Chinese market, support its growth potential [4][5] Growth Potential - Lululemon's resilience against economic challenges and its robust brand make it a strong investment opportunity, with continued revenue growth albeit at a slower pace [5] - Investors are considering Lululemon's future growth potential, especially in light of Morgan Stanley's optimistic price target of $339 [5][6]

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

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]