Lululemon Athletica Inc.

LULU · NASDAQ · Consumer Cyclical

$114.28▲ +3.30%

+$3.65 today

Mkt cap $12.98B
P/E 9.3
Day $110.55 – $115.70

Confidence

High conviction

The read

Lululemon EPS beats estimates by 1%, but growth remains weak

Lululemon reported Q2 EPS of $1.69, beating estimates by 1.02%, with shares rising 2.45% post-earnings; growth metrics remain subdued and guidance tone cautious.

Confidence note: EPS beat is confirmed with concrete data; growth and guidance signals are clear; valuation and quality metrics well documented.

What happened

Earnings print

Reported EPS was $1.69 versus an estimate of $1.67, a 1.02% beat.

Guidance

Guidance tone is cautious with no explicit acceleration in growth forecasted.

Price reaction

Shares rose 2.45% on earnings day, closing at $121.84, reflecting modest positive sentiment.

Street narrative

Despite the EPS beat, growth remains weak with TTM revenue growth at 4.2% and EPS growth negative; valuation remains attractive but growth concerns persist.

So what

What changed

EPS beat estimates by 1.02% to $1.69, but growth metrics remain weak with cautious guidance.

What the market is pricing

Stock rose 2.45% reflecting modest optimism despite weak growth and cautious outlook.

Fundamental takeaway

Maintain a cautious stance; monitor next quarter's growth acceleration or further weakness for thesis update.

Next 30–90 days

Bull

51%

Growth accelerates with improved revenue and EPS trends, validating valuation and quality.

Next quarter EPS growth turns positive
Revenue growth exceeds 10% YoY

Base

34%

Growth remains subdued but stable; valuation and quality support sideways to modest upside.

Stable EPS around current levels
Revenue growth remains near 4-5%

Bear

15%

Growth weakness deepens, leading to multiple contraction despite strong quality metrics.

EPS declines further next quarter
Revenue growth falls below 2%

What to do

If you hold it

Hold unless next quarter EPS growth falls below zero or guidance is lowered significantly.

If you're watching

Consider entry if next quarter EPS growth turns positive and guidance improves; avoid if growth remains weak or guidance is cautious.

Keep on your radar

Next quarter EPS growth rate (due Q3 2026)
Revenue growth trends over next two quarters
Management guidance updates in next earnings call
Stock price relative to 50-day and 200-day moving averages