NASDAQConsumer DiscretionaryApparel - RetailSnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — Achieve 2% to 4% revenue growth in 2026: FY26 revenue guidance ~11.07B vs prior ~11.0B implies ~0.7% YoY growth vs 2% target.
Lululemon aims for 2% to 4% revenue growth in 2026 with $11.15B revenue guidance. Profit per share is guided between $10.95 and $11.15. New store openings in India and board stability support growth. The company trades cheap with a P/E of 9.3 versus peers at 23.2.
Sales growth is pressured by slowing demand in China and brand controversies. Management is volatile with recent earnings cuts. Competition and tariff risks may hurt margins and revenue growth.
The market prices in about 8% revenue growth and a 42% discount to our fair value near $200. Our fair value is well above the Street median of $115, reflecting optimism on recovery and growth. Recent guidance cuts and earnings revisions show risks to these expectations.
Breaks if: China sales decline more than 5% YoY in FY26
Breaks if: EPS falls below $10.95 in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is characterized as a durable compounder with a mixed execution track record. The current thesis state indicates that while the company has potential for growth, recent performance has been inconsistent.
The market seems to have priced in a low level of execution quality, suggesting that while LULU is considered cheap compared to its peers, there is an expectation gap. The valuation reflects a justified position given the company's current performance and risks.
Fundamentals are likely to show continued mixed results, as management aims for revenue growth of 2% to 4% in 2026 but has faced challenges in meeting guidance. The recent financial performance has been neutral, with a low probability of missing expectations in the near term.
The thesis hinges on several factors, including the company's ability to meet its revenue and EPS guidance, as well as external economic conditions such as inflation and sector performance. Positive momentum from leading companies in the Consumer Discretionary sector could also support LULU's growth.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the thesis. However, there are concerns about potential cuts to EPS guidance due to weak sales. This uncertainty may impact revenue growth expectations for the company.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Lululemon has set an EPS guidance range of $10.95 to $11.15 for the fiscal year 2026.
Stated in 2 of last 2 quarters. EPS guidance for 2026 is $10.95 to $11.15. The diluted EPS for 2026-Q1 was $1.69, which is below the quarterly guidance range of $1.76 to $1.81, indicating limited progress towards the annual target.
“Diluted earnings per share are now expected to be in the range of $10.95 to $11.15 for the year.”
“Diluted earnings per share are expected to be in the range of $12.10 to $12.30 for the year.”
Breaks if: Major CEO departure or board instability occurs
Breaks if: YoY revenue growth falls below 2% in FY26
Lululemon aims to achieve a revenue growth of 2% to 4% for the fiscal year 2026.
Stated in 3 of last 3 quarters. Revenue guidance for 2026 is $11.000 billion to $11.150 billion, indicating a growth target of 2% to 4%. The trajectory shows persistent focus, but limited substantive delivery so far as the revenue for 2026-Q1 was $2.471 billion, slightly below the guidance range.
“For 2026, the Company now expects net revenue to be in the range of $11.000 billion to $11.150 billion.”
“For 2026, the Company expects net revenue to be in the range of $11.350 billion to $11.500 billion, representing growth of 2% to 4%.”
“For 2025, the Company now expects net revenue to be in the range of $10.962 billion to $11.047 billion.”
Over the next 1 to 3 years, LULU's performance will depend on its execution and external market conditions. Not investment advice.
