Lululemon (LULU) PT Lowered to $110; Piper Sandler: 'Is This the Last Cut?'

Piper Sandler analyst Anna Andreeva lowered the price target on Lululemon (NASDAQ: LULU) to $110.00 (from $130.00) while maintaining a Neutral rating.

The analyst commented: "Is This the Last Cut? After an inline 1Q26 (GM missed slightly on higher markdowns), LULU saw conversion drop off into April; per management, on negative social media commentary around the brand (likely probe in TX into potential use of chemicals in fabrics, although LULU has had negative press issues before) as well as under-performance of some product launches (the New Look of Yoga). For 2H26, LULU expects sales trends relatively consistent with 2Q26, although lowered guidance still embeds EPS improvement. Lower est. ('26/'27 to $10.70/ $10.58) and PT to $110 (from $130, based on 10x our '27 est. vs. 11x '26 previously, to account for ongoing execution issues); LULU's lowered '26 guide assumes EBIT margin ~16%, which could still be over-earning considering ongoing product execution issues and investments in marketing (up 10-15% in '26 and at 6.6.5% expected this year, still relatively low vs. competition), plus new CEO reset is likely still ahead."

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