All articles tagged with #lulu
Michael Burry keeps a contrarian stance on Lululemon after its stock plunged about 18% on weak Q2 results and lower guidance, saying he would add to his largest disclosed stake if LULU falls below $100, signaling faith in a potential turnaround despite near-term demand headwinds.
Lululemon shares fell after-hours after the company cut its fiscal 2026 guidance as revenue declined 4% in Q2 to $2.4 billion and comparable-store sales dropped 9%. The retailer now expects full-year net revenue of $10.35–$10.5 billion and adjusted EPS of $9.48–$9.73, citing challenging dynamics while preparing to install Heidi O’Neill as CEO; the softer outlook prompted the stock move.
Lululemon named Heidi O’Neill, a longtime Nike executive, as its next CEO, effective September 8, 2026, with the board approving the move. The announcement sent LULU shares down about 5% in after-hours trading as investors weigh leadership change against a slower growth backdrop and ongoing inventory/competition challenges.
Before Lululemon's Q4 results after the market closes on March 17, analysts expect EPS of $4.78 on revenue of about $3.57 billion. The company has beaten earnings in the last 16 quarters, but the slowdown could be cyclical or structural as competition from Alo Yoga, Vuori, Athleta and Nike intensifies. International growth helped but remains a minority of revenue, and a beat may not be enough without durable growth. Options traders anticipate roughly a 10.5% post-earnings move, while the Street’s consensus is a Hold (1 Buy, 17 Holds) with a $202.87 target implying ~27% upside, signaling investors want clearer evidence of sustained momentum.