Lululemon Price Target Rises to $47 as EPS Forecast Drops 35.8%
LULU•Lululemon’s price target rose to $47.00 from $42.00 even as UBS maintained a Neutral rating based on cautious profitability outlook. Revenue is expected at $2.4 billion, up 2.6%, while EPS is projected to fall 35.8% to $1.67 on weaker North American demand and higher operating costs.
1. Price Target Increase and Rating
UBS raised Lululemon’s price target to $47.00 from $42.00 but maintained a Neutral rating, reflecting confidence in top-line growth alongside caution over near-term profitability.
2. Earnings and Revenue Projections
Lululemon is forecast to generate $2.4 billion in revenue for its upcoming quarter, a 2.6% increase, while earnings per share are expected to decline 35.8% to $1.67 due to margin pressures.
3. Market Challenges Affecting Margins
Weaker North American demand, heavier discounting, potential tariffs and elevated SG&A costs are tightening profit margins and weighing on the company’s short-term earnings outlook.
4. Growth Strategy and Governance Resolution
The ‘Power of Three X2’ strategy—focused on product innovation, guest experience and global expansion—remains central, and resolution of the founder dispute removes a governance overhang.
