Athletic apparel company Lululemon Athletica (LULU) is scheduled to announce its results for the second quarter of 2025 after the market closes on September 4. Wall Street analysts expect the company to post earnings per share of $2.86 in Q2 on revenues of $2.54 billion. Ahead of the results, several Top Wall Street analysts have decreased their price targets to reflect weaker U.S. sales, margin pressure from discounting, and rising competition in the athletic wear space.
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Needham Warns on Margin Pressure
Needham analyst Tom Nikic lowered his price target to $238 from $317 (17% upside) while keeping a Buy rating. The 4-star analyst warned that margin pressure and heavier discounting online could lead to a Q2 miss and lower full-year guidance. However, with the stock trading at just 14x forward earnings, its lowest multiple since 2008, Nikic believes much of the bad news is already priced in. He pointed to stronger online search trends, a strong brand, and a cash-rich balance sheet as positives that could support demand in the second half.
BTIG Notes Competitive and U.S. Growth Pressures
Also, BTIG analyst Janine Stichter cut her price target to $375 from $405 (85% upside) but maintained a Buy rating. She expects Q2 results to be in line but said full-year guidance could be lowered due to tariffs and slower U.S. growth. The 4-star analyst highlighted opportunities in menswear and international markets, though she noted that valuation multiples remain near record lows.
Morgan Stanley Cautious on Near-Term Growth
Meanwhile, Morgan Stanley analyst Alexandra Straton cut her price target to $223 from $280 (10.29% upside) and kept a Hold rating. The 4-star analyst said a rebound in U.S. sales looks unlikely in the near term, and profit guidance may also be lowered. While the stock’s valuation looks cheap, Straton warned it could stay pressured by competition and market saturation.
Is LULU a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Lululemon Athletica stock based on 13 Buys, 12 Holds, and one Sell assigned in the past three months. Further, the average LULU price target of $266.02 per share implies 31.56% upside potential.
