Lululemon Athletica Inc. (NASDAQ:LULU) has reached a new 52-week low, with its shares trading at $257.385. This marks a significant downturn for the athletic apparel company, which has seen its stock price steadily decline over the past year. The 52-week low of $257.385 is a stark contrast to the company's previous performance, indicating a challenging period for the firm. Over the past year, Lululemon Athletica has experienced a substantial decrease in its stock value, with a 1-year change of -31.36%. This downward trend reflects the difficulties faced by the company in a highly competitive market.
In other recent news, Lululemon Athletica Inc. reported first-quarter earnings per share (EPS) of $2.54, spurred by a 40% rise in international sales and a modest 2% increase in U.S. sales. The company also expanded its share repurchase program by an additional $1 billion. Meanwhile, the company's shareholders approved executive pay, elected directors, and ratified the appointment of PricewaterhouseCoopers LLP as Lululemon's independent registered public accounting firm for the fiscal year ending February 2, 2025. However, a proposal requesting a report on the impact of animal-derived products did not secure enough support and was not approved.
Financial analyst firms have adjusted their stance on Lululemon following these developments. Baird lowered the price target to $470 from the previous $505, but maintained an Outperform rating. Deutsche Bank resumed coverage on Lululemon, setting a Hold rating and a price target of $357. Citi maintained a Buy rating, with a steady price target of $415, while KeyBanc revised its price target for Lululemon, reducing it to $415 from $515. BofA Securities raised its price target for Lululemon to $440, and BMO Capital cut its share price target to $384. These adjustments reflect recent developments and expectations for Lululemon's performance.
InvestingPro Insights
In light of Lululemon Athletica Inc.'s (LULU) recent drop to a new 52-week low, a closer look at some key data points and expert analysis from InvestingPro may provide investors with a clearer picture of the company's current standing. With a market capitalization of $32.73 billion and a Price/Earnings (P/E) ratio of 21.78, Lululemon appears to be trading at a valuation that acknowledges its growth prospects, especially considering its P/E ratio has adjusted to 20.82 over the last twelve months as of Q1 2025. Additionally, the company's revenue growth remains strong at 15.65% for the same period, indicating an ability to increase sales despite market challenges.
InvestingPro Tips highlight that Lululemon holds more cash than debt on its balance sheet, suggesting financial stability, and the Relative Strength Index (RSI) indicates the stock may be in oversold territory, which could interest value-seeking investors. Notably, while 24 analysts have revised their earnings expectations downwards for the upcoming period, the company's liquid assets exceed its short-term obligations, providing a cushion against immediate financial pressures. Moreover, Lululemon is trading at a high Price/Book multiple of 8.06, which could be a point of consideration for investors evaluating the stock's asset value relative to its price.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can be accessed through InvestingPro's platform. To help investors make more informed decisions, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, there are 12 more InvestingPro Tips that can provide further insights into Lululemon's financial health and market position.
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