Lululemon on pace for worst day since 2020 as Wall Street flips on the athleisure retailer
Lululemon shares tumbled as much as 20% Friday, pacing for their worst single-day drop in over five years, after the athleisure giant whiffed on earnings and slashed its full-year profit forecast. The company now expects full-year earnings per share between $14.58 and $14.78, down from previous guidance of $14.95 to $15.15, citing tariff pressure and slowing US demand.
Wall Street wasn’t feeling the stretch. Analysts across the board cut price targets and flagged concerns:
BMO Capital dropped its target by $52 to $250, noting this is the first time since 2014 that Lululemon has lowered its Q1 full-year earnings outlook.
Bank of America Securities trimmed its target to $370 from $400 but held its “buy” rating, saying it still believes in Lululemon’s long-term game plan.
BTIG cut its target to $405 from $420, warning that the retailer appears to be bracing for higher markdowns and minimal tariff relief.
UBS slashed its target to $290 from $330, citing margin pressure and weakening foot traffic in the US.
Friday’s plunge marks another major setback for the former high-flying retailer, with the stock losing nearly a third of its value year to date.
