{
  "id": 8786630,
  "title": "Lululemon (LULU): Wall Street Keeps Cutting Targets, But Nobody’s Calling It Cheap Enough to Buy",
  "url": "https://urgent.news/2026/09/20/lululemon-lulu-wall-street-keeps-cutting-targets-but-nobodys-calling",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-20T21:52:39.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/lululemon-lulu-wall-street-keeps-215239806.html"
  },
  "original_language": "en",
  "account": "In September 2026, lululemon athletica inc. (NASDAQ: LULU) reported weaker-than-expected second-quarter fiscal 2026 results, with net revenue falling 4% to $2.4 billion and comparable sales dropping 10% on a constant dollar basis. Management revised full-year revenue guidance to a decline of 5% to 7% and earnings per share to $9.48 to $9.73, down from prior forecasts of flat to down 1% and $10.95 to $11.15. Shares dropped about 18% in extended trading following the announcement. New CEO Heidi O'Neill was set to begin her role the following week. Despite operational achievements, such as a 20% increase in chase volume and positive trends in away-from-body styles, analysts remain skeptical. Citi maintained a Neutral rating and noted a slightly more favorable risk-reward profile, while Wells Fargo and Morgan Stanley lowered their target prices and kept Underweight and Equal Weight ratings, respectively. BMO Capital warned of weakening demand and historically strong margins under pressure, while JPMorgan expressed concern over LULU's third-quarter earnings outlook being 60% below consensus. Hedge fund ownership decreased to 51 funds from 61, and short interest stands at 12.78% of float. Despite these challenges, Lululemon's brand and community events continue to draw strong participation.",
  "summary": "Lululemon's second-quarter fiscal 2026 results revealed a 4% drop in net revenue to $2.4 billion, with comparable sales declining 10% on a constant dollar basis. Management cut full-year revenue guidance to a 5% to 7% decline, down from a prior forecast of flat to down 1%, and lowered full-year earnings per share guidance to $9.48 to $9.73 from $10.95 to $11.15. The stock fell about 18% following the news, despite the company's operational bright spots, such as a 20% increase in chase volume and positive trends in away-from-body styles. However, Wall Street remains skeptical, with multiple analysts cutting their price targets and maintaining negative ratings, citing concerns over demand and the company's historically strong margins.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}