Lululemon: Regional Softness and EPS Headwinds Justify Neutral Hold Despite International and E-Commerce Strength

William Blair analyst Sharon Zackfia has maintained their neutral stance on LULU stock, giving a Hold rating on March 3.

Sharon Zackfia has given his Hold rating due to a combination of factors tied to lululemon’s near-term performance and regional dynamics. While the company signaled that fourth-quarter revenue and earnings should land toward the upper end of prior guidance, overall comparable sales growth is modest, with only about a low-single-digit gain on a constant-currency basis and continued softness in the Americas weighing on momentum.

At the same time, strength in China and the rest of world, along with expanding e-commerce and a healthier women’s business, help offset regional pressure and support current valuation levels rather than argue for a more aggressive stance. Gross margin expectations are stable but require slightly heavier markdowns in North America, which, together with an outlook for a second consecutive year of lower EPS in 2026, limits upside visibility and underpins the decision to maintain a neutral, Hold recommendation.

In another report released on March 3, Bank of America Securities also maintained a Hold rating on the stock with a $200.00 price target.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LULU in relation to earlier this year.