Lululemon Athletica Inc. (NASDAQ:LULU) is teeing up for a comeback, with product revamps on the horizon and global momentum intact. The company is tightening for 2026—promising fresher assortments and faster pivots.
BTIG analyst Janine Stichter reiterated a Buy rating on Lululemon, with a price forecast of $303.
Stichter said the team met with the firm’s CEO, Calvin McDonald, CFO Meghan Frank, and VP of IR Howard Tubin.
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The analyst called Lululemon firmly in the “show me” camp, awaiting more precise execution.
Oversold, But Resilient
With product enhancements delayed to spring 2026, she sees no near-term catalyst.
Still, weak sentiment and near-trough valuation suggest oversold conditions, Stichter noted. She believes estimates can generally hold despite recent operational noise.
Product misses largely reflect talent gaps and are expected to improve under the new creative direction by spring.
She added that while fixing lounge and social, management remains committed to core performance.
Process and organizational changes aim to boost excitement and agility in assortments.
Global Tailwinds Cushion
Competition matters, but it isn’t the primary headwind, in Stichter’s view.
Markdown pressure should ease in 2026, while tariff mitigation, including pricing, is progressing.
U.S. growth ultimately settles back into a durable rhythm, while investors have already factored in the risk that it remains muted for longer.
Stichter also highlighted China as a continued growth engine. International momentum, she adds, helps cushion any domestic wobble. Taken together, she sees a favorable risk-reward for a proven compounder with a long record of delivery and secular tailwinds still at its back.
Price Action: LULU shares are trading higher by 0.62% to $165.66 at last check on Friday.
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