Lululemon Athletica Inc. (LULU) PT Lowered to $280 at Piper Sandler

Piper Sandler analyst Anna Andreeva lowered the price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $280.00 (from $315.00) while maintaining a Neutral rating.

The analyst commented: "We lower ‘25/’26 EPS estimates to $14.50/$15.30 for ‘25/’26; this assumes sales up 5% (the low end of the ’25 guide) and 6%, respectively, with EBIT margins at 21.9% (down 180 bps—vs. down 100 bps as per ’25 guide) and 21.1% (down 80 bps), respectively. We lower our PT to $280 (from $315) which is based on 18x our ’25 EPS estimates (20x previously)—we think LULU’s strong brand and attractive category deserve a premium multiple, however, ability to fully offset the pressure with higher pricing is questionable given product execution issues and competitors on offense. the brand plays in an international opportunity. Using the most recent 10% tariffs (as of ’24 disclosure, LULU’s manufacturing base consists of 40% Vietnam, 17% Cambodia, 11% Indonesia, 11% Sri Lanka, 7% Bangladesh), we estimate 150 bps in GM decline, pre-mitigation."

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