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Lululemon (LULU) Dips More Than Broader Market: What You Should Know

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In the latest close session, Lululemon (LULU - Free Report) was down 2.42% at $202.57. The stock's performance was behind the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Heading into today, shares of the athletic apparel maker had lost 5.4% over the past month, lagging the Consumer Discretionary sector's gain of 1.41% and the S&P 500's gain of 2.65%.

The upcoming earnings release of Lululemon will be of great interest to investors. The company's earnings report is expected on September 4, 2025. It is anticipated that the company will report an EPS of $2.85, marking a 9.52% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.54 billion, up 6.95% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.35 per share and revenue of $11.18 billion, indicating changes of -1.98% and +5.58%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.87% lower. Lululemon is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Lululemon is presently trading at a Forward P/E ratio of 14.47. This represents a discount compared to its industry average Forward P/E of 16.08.

It is also worth noting that LULU currently has a PEG ratio of 1.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel industry had an average PEG ratio of 1.93 as trading concluded yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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