Lululemon Analysts Issue 'Reduce' Rating Despite Earnings Beat

Key Facts

Amid shifting dynamics in the premium retail sector, Lululemon Athletica Inc is facing a wave of analyst caution despite its recent financial performance. According to reports, the company received an average 'Reduce' rating from 32 brokerages, with an average 12-month price target set at $152.88. Furthermore, the company issued FY2026 earnings per share guidance in the range of $10.95 to $11.15, signaling a conservative outlook from management for the upcoming fiscal year.

This downgrade comes as the activewear market faces intensifying competition from emerging brands like Alo Yoga and Vuori, which are capturing significant market share according to industry analysis. In comparison to peers, Nike recently reported supply chain headwinds and softening consumer demand, justifying the broader analyst skepticism toward the sector. Per market data, the current consensus price target for Lululemon reflects a cautious stance compared to its historical valuation premiums.

LULU shares closed at $118.43 (close July 02, 2026), after trading between a high of $119.83 and a low of $116.4 during the session. Traders are monitoring support levels near $116, with upcoming U.S. retail sales data serving as a key catalyst for the consumer discretionary sector. Additionally, market participants should watch for central bank commentary, such as the Fed's Barkin speech, for its potential impact on consumer spending sentiment.