Athletic apparel and footwear company Lululemon Athletica (LULU) is scheduled to announce its results for the third quarter of Fiscal 2025 after the market closes on December 11. LULU stock is down 52% year-to-date amid concerns about slowing sales, intense competition, and pressure on discretionary spending. According to TipRanks’ Options Tool, options traders expect about an 11.98% move in either direction in LULU stock in reaction to Q3 FY25 results.
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This implied move is lower than LULU stock’s average post-earnings move (in absolute terms) of 17.12% over the past four quarters.
Wall Street expects Lululemon’s Q3 FY25 earnings per share (EPS) to decline 23% year-over-year to $2.21. Meanwhile, revenue is expected to rise 3.5% to $2.48 billion.
Analysts’ Views Ahead of LULU’s Q3 Earnings
Ahead of the Q3 FY25 earnings, BTIG analyst Janine Stichter reiterated a Buy rating on LULU stock with a price target of $303. The analyst stated that after the significant guidance cut with the Q2 report, she expects third-quarter results to be in line with the outlook. Further, Stichter expects Lululemon to issue conservative guidance for Q4 FY25. Stichter added that her meetings with the management in mid-October indicated that data points are mixed, with the company seeing “some wins” across product and marketing, but continuing to be mostly challenged.
The analyst thinks that investors will continue to pay attention to the extent of “acceleration of product newness” and improved execution in spring 2026, which can revive LULU’s sales in the Americas. They would also focus on the extent of continued margin contraction amid higher markdowns, tariff pressures, and SG&A reinvestment. Overall, Stichter believes that LULU remains a “show me” story, as she sees a lack of a near-term catalyst with product enhancements pushed into spring 2026. With LULU stock’s valuation near trough levels, the analyst sees opportunity in 2026 if the company can deliver even slight reacceleration in the Americas business and maintain estimates roughly intact.
Recently, Needham analyst Tom Nikic reiterated a Hold rating on Lululemon Athletica stock. The 4-star analyst noted that the exit of Celeste Burgoyne, the company’s president of the Americas, to become the chief revenue officer at Vail Resorts (MTN) marks the second high-profile executive departure in the last 18 months, following the departure of chief product officer Sun Choe last year. Nikic added that many investors viewed these two individuals as among the key architects of LULU’s growth. Consequently, he believes that the loss of these executives during a challenging period in the North America business is “not ideal.” Overall, Nikic remains sidelined on LULU stock and awaits greater visibility into improvement in the domestic business.
Is LULU a Good Stock to Buy?
Currently, Wall Street has a Hold consensus rating on Lululemon stock based on 15 Holds, one Buy, and one Sell recommendation. The average LULU stock price target of $185.21 indicates that shares are expected to be range-bound at current levels.
