Shares of Lululemon Athletica Inc (NASDAQ:LULU) tanked in early trading on Friday, after the company reported mixed second-quarter results.
Here are some analyst takeaways.
- BofA Securities analyst Lorraine Hutchinson downgraded the rating from Buy to Neutral, while reducing the price target from $300 to $210.
- JPMorgan analyst Matthew Boss reiterated a Neutral rating, while cutting the price target from $224 to $191.
- Telsey Advisory Group analyst Dana Telsey downgraded the rating to Market Perform, while reducing the price target from $360 to $200.
Check out other analyst stock ratings.
BofA Securities: Although Lululemon reported an earnings beat for the second quarter, this was overshadowed by its reduced sales guidance and "much larger than expected de minimis and tariff pressure," Hutchinson said in the downgrade note. Sales trends decelerated in North America through the quarter, and management indicated that this could improve in the Spring of 2026, she added.
"We thought building newness would help stabilize the comp and that LULU could raise prices to sufficiently offset incremental tariff pressure," the analyst wrote. However, the company's U.S. turnaround has been pushed further out, she stated.
JPMorgan: Lululemon reported quarterly earnings of $3.10 per share, higher than consensus of $2.87 per share, Boss said. He added, however, that same-store-sales grew 1%, missing Street expectations of 2.4%.
The disappointing same-store-sales performance was due to North America comps declining 3% versus consensus of a 0.8% decline, "which sequentially worsened over the course of the quarter despite taking higher than planned markdowns," the analyst wrote. Management lowered their earnings guidance for 2025 to $12.77-$12.97 per share, from their prior forecast of $14.58-$14.78 per share, he further stated.
Telsey Advisory Group: Lululemon reported earnings of $3.10 per share, lower than the same quarter last year of $3.15 per share, Telsey said. The company managed to beat earnings expectations on the back of better gross margins and operating expenses, despite its softer revenues, she added.
The company reduced its full-year sales guidance to between $10.85 billion and $11 billion, from its prior projection of $11.15-$11.30 billion, the analyst stated. "While the moderated earnings outlook comes in part due to incremental tariff headwinds, the sales miss for the quarter and moderation to the outlook for the year is a concern," she further wrote.
LULU Price Action: Lululemon Athletica shares were down 18.42% at $168.13 at the time of publication on Friday, near its 52-week low, according to Benzinga Pro data.
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