Lululemon (LULU) PT Lowered to $100 at Stifel on Downward Revenue, EPS Revision

Stifel analyst Peter McGoldrick lowered the price target on Lululemon (NASDAQ: LULU) to $100.00 (from $134.00) while maintaining a Hold rating.

The analyst commented, "We are disappointed to see another sharp downwards revision revenue (-6%) and EPS (-21% ex-tariff benefit). Questions on trend softness in the core North America market are not yet answered, and a surprise reversal of China Mainland trends – previously the strongest regional revenue contributor – further impact the consolidated outlook. The high operating leverage related to the retail model magnifies lower revenue contribution, as the cut to FY26 outlook at the midpoint represents -$421mn lower adj. operating profit dollars (excludes $134.5mn tariff benefit) and -$650mn revenue vs. the prior outlook. We believe shares deserve a valuation discount given challenging visibility, poor traffic trends, and new questions around China growth potential. Our $100 target price represents 5.0x EV/EBITDA on CY26E estimates vs. the group at 8.0x, and we model adj. EBITDA -6%y/y in 2027E."

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