Lululemon Price Target Slashed to $130, FY26 Outlook Reset Warned
LULU•Evercore lowered Lululemon’s price target to $130 from $175, flagging a potential fiscal-2026 outlook reset that may offset its attractive valuation. Analysts forecast Q1 revenue of $2.37 billion with flat $2.60 EPS, and Lululemon targets 20% China revenue growth this year.
1. Price Target Cut and Valuation Risk
A major equity research firm reduced its price target for Lululemon to $130 from $175, citing a potential “big reset” to fiscal 2026 expectations that could overshadow the stock’s current valuation. The adjustment implies only a 3% upside from recent levels and underscores investor concern over slowing growth.
2. Q1 Revenue and Earnings Forecasts
Wall Street anticipates Q1 revenue of $2.37 billion, down from $2.40 billion a year ago, with EPS expected to remain flat at $2.60. Investors will watch whether Lululemon can maintain stable margins with lower top-line growth.
3. China Growth and Turnaround Initiatives
Lululemon projects 20% revenue growth in China this year as part of its global expansion strategy. The company is also focusing on boosting full-price sales through new product launches, reducing markdowns and managing inventory to restore brand health.
