Lululemon Q4 Preview: More Downside Ahead? Market Expert Says 'Downtrend Written All Over' Chart

Core Viewpoint - Lululemon is expected to report a decline in fourth-quarter revenue and earnings per share, with analysts expressing concerns about the company's North American growth and inventory issues, while also highlighting the potential positive impact of a new CEO announcement [2][3][4][5][6]. Earnings Estimates - Analysts predict Lululemon's Q4 revenue to be $3.59 billion, a decrease from $3.61 billion in the same quarter last year [2]. - Expected earnings per share are $4.77, down from $6.14 year-over-year [2]. - The company has consistently beaten revenue estimates in eight of the last ten quarters and earnings estimates for over 15 consecutive quarters [2]. Expert Opinions - Needham analyst Tom Nikic maintains a Hold rating on Lululemon, citing tough fundamentals but warns against shorting the stock due to the potential for a new CEO announcement [3][4]. - Freedom Capital Markets Chief Market Strategist Jay Woods notes that investors are looking for signs of a turnaround in the North American segment, which has been under pressure [5][6]. Key Items to Watch - A potential CEO announcement is anticipated, as the former CEO stepped down on January 31, 2026, with interim leadership currently in place [7]. - A new CEO with experience in the apparel sector could instill optimism in the company [7]. - Recent data shows a 33% year-over-year increase in international revenue, which may help offset declines in the Americas segment [8]. Visit and Inventory Trends - Lululemon experienced a 7.2% year-over-year increase in store visits in October, followed by declines of 3.5% and 8.4% in November and December, respectively [9]. - An increase in inventory on the "made too much" page could indicate weak revenue for the upcoming quarter [9]. Stock Performance - Lululemon's stock is currently trading at $159.76, down 24.2% year-to-date in 2026 and down 51.2% over the past year [10].