LULU Stock Recent News

Lululemon (LULU) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

lululemon remains a powerful brand with loyal customers, despite recent stock decline and cautious management guidance. Growth in the Americas is slowing, but strong international expansion, especially in China and Europe, supports the long-term investment thesis. lululemon's innovation, financial strength, and brand loyalty keep it ahead of rising competition and protect its premium status.

Downgrades are detrimental to a stock's price momentum and often lead to sustained downtrends. However, sometimes good stocks are plagued by bad news that ultimately leads to a buying opportunity.

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Lululemon (LULU -2.12%) shares dropped roughly 20% in value last week after the company delivered an earnings report that included less enthusiastic earnings expectations for the year. While its revenues are still expected to be relatively in line with previous guidance, the added costs that tariffs will impose led management to dial back earnings estimates, causing the market to hit the stock pretty hard.

LULU had a disappointing start to the year with a marginal beat on the top-line but the bottom-line coming in-line with estimates. The company's usual growth catalysts (such as not having to rely on markdowns and the China business) are no longer effective. My updated price target is where the company currently trades, leading to a rating downgrade from a BUY to a HOLD.

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LULU's growth is slowing down across all regions, with comparable sales declining in Americas. Management lowered their full-year EPS guidance due to higher tariffs, a major reason for the selloff. LULU's Free Cash Flow has declined for four consecutive quarters.

LULU stock dips post-earnings as tariff concerns, rising costs and soft U.S. demand overshadow solid quarterly results.

Explore Lululemon's (LULU) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.