Lululemon (NASDAQ:LULU) Maintains "Hold" Rating Amid Challenges

• Jefferies maintains a "Hold" rating for Lululemon (NASDAQ:LULU) as the company faces ongoing challenges, with a stock price of $159.27.
• Lululemon's weaker-than-expected fiscal 2026 forecast includes first-quarter sales between $2.40 billion and $2.43 billion, and EPS ranging from $1.63 to $1.68.
• The company appoints Chip Bergh to its board in an effort to address these challenges, amidst a backdrop of tariffs, increased expenses, and a proxy battle.

On March 17, 2026, Jefferies maintained its "Hold" rating for Lululemon (NASDAQ:LULU), with the stock priced at $159.27. This decision comes amid ongoing challenges for the company, as highlighted by StreetInsider. The company's earnings per share (EPS) guidance indicates potential difficulties ahead.

Lululemon's stock has declined following a weak outlook, emphasizing the need for change. The company has appointed Chip Bergh, former Levi's CEO, to its board. This decision aligns with efforts by the founder to instigate board changes. The stock's current price is $159.27, reflecting a slight decrease of 0.40%.

Despite surpassing Wall Street's expectations for its fiscal fourth quarter, Lululemon issued a weaker-than-expected forecast for fiscal 2026. Tariffs, increased expenses, and a proxy battle with its founder have negatively impacted the outlook. The company anticipates first-quarter sales between $2.40 billion and $2.43 billion, below the $2.47 billion estimated by LSEG.

Earnings per share for the first quarter are expected to range from $1.63 to $1.68, falling short of the anticipated $2.07. For the full year, Lululemon projects sales between $11.35 billion and $11.50 billion, less than the expected $11.52 billion. Earnings guidance of $12.10 to $12.30 per share is weaker than the $12.58 forecasted.

Interim co-CEO Meghan Frank emphasizes the company's commitment to addressing these challenges. She states, "The work is really underway in terms of our action plan, and we're really focused on the importance of course correcting on a number of fronts." Lululemon's market capitalization is approximately $17.87 billion, with a trading volume of 5,378,710 shares.