Lululemon Share Price (NASDAQ:LULU) – Forecasts Get Lowered Amid Post Earnings Selloff

Lululemon share price traded down more than 15% on Friday as earnings missed the mark and analysts weighed in with new price targets and forecasts.

Telsey Advisory Group has revised its earnings per share (EPS) prediction for Lululemon Athletica Inc. (NASDAQ:LULU) for the first quarter of 2025, marking a dip from the previously projected figures. The esteemed equity research analysts have lowered their forecast from the initial estimate of $2.60 to $2.40. This adjustment signals caution amidst an economic landscape that continues to challenge the apparel industry and its stakeholders.

In a broader context, Lululemon Athletica maintains a full-year 2025 earnings per share consensus estimate of $14.19. This figure is critical for investors who monitor the ongoing performance and future prospects of the high-performance athletic apparel retailer.

Reviewing the company's stock market trajectory over the last year reveals some significant fluctuations, with a 52-week low residing at $304.19 while the peak scaled to a 52-week high of $516.39. The range reflects the stock's volatility and the changing dynamics in the market that influence investor sentiment towards brands like Lululemon.

Further underlining the company's strong financial health, Lululemon Athletica announced its quarterly earnings per share of $5.29 for the quarter ending on March 21st, positioning the company ahead of the analysts' consensus estimates. The achievement denotes a notable win for the retailer, emphasizing its capacity to surpass expectations even in a competitive and fluctuating market.

Adding to the narrative of Lululemon's robust strategic manoeuvres, the Board of Directors authorized an assertive stock repurchase program on December 7th. This program, worth $1.00 billion, empowers the company to reacquire up to 1.7% of its shares, underscoring confidence in its own economic standing and a commitment to enhancing shareholder value.

As the year progresses, investors and analysts alike will continue to monitor Lululemon Athletica's performance in conjunction with broader market trends. The company's strategic initiatives, such as the stock repurchase program, combined with its ability to exceed earnings expectations, are poised to play a significant role in shaping its financial narrative in 2025 and beyond.

Analyst Price Target Changes For LULU

Analysts were quick to weigh in with price target adjustments as the results of earnings came through. JP Morgan analyst Matthew Boss kept an Overweight rating on the stock, but revised down the PT amid what was termed a “soft start in the US” post holiday season. Other notable movements from some of the major names and price target changes are listed below:

• JP Morgan – lower $509 from $531.
• Barclays – lower $546 from $610 whilst keeping an Overweight rating.
• BMO Capital – raise $420 from $408 (Raise)
• Truist – lower $498 from $561
• Wedbush – lower $492 from $548
• Evercore – lower $515 from $575
• Bank Of America – lower $530 from $540
• Morgan Stanley – lower $490 from $539
• Wells Fargo – lower $425 from $450
• Citi – lower $500 from $520

As the current price of LULU sits just above $403, even despite analysts changes, the targets on the board remain significantly above today. It is worth considering that even in the scope of target reductions, the sentiment is still overwhelmingly positive. Whether this will continue remains to be seen.