Analysts cut lululemon targets as weak traffic clouds outlook
UBS and Wells Fargo lowered their price targets after lululemon reduced its 2026 revenue forecast and cited ongoing uncertainty around sales growth and strategy.
UBS and Wells Fargo have cut their price targets for lululemon athletica after the apparel retailer lowered its 2026 outlook, citing weak consumer traffic, product concerns and limited visibility over its performance.
UBS reduced its target from US$120 to US$106 and retained a Neutral rating. Wells Fargo lowered its target from US$105 to US$95 while maintaining an Equal Weight rating.
lululemon now expects 2026 net revenue of US$10.35 billion to US$10.5 billion, representing a projected decline of 5% to 7%. It forecasts diluted earnings per share of US$9.48 to US$9.73.
UBS said the company’s product assortment was not resonating with consumers and that traffic remained weak. Wells Fargo said investors might have to wait until next year for new management to outline its forward strategy.
Incoming chief executive Heidi O’Neill is expected to need several months to develop and implement a plan. Morningstar senior equity analyst David Swartz told Yahoo Finance that lululemon’s debt-free balance sheet reduced financial pressure, but said sales growth remained the central problem.
Reported hedge-fund ownership fell to 51 funds in the second quarter of 2026 from 61 in the first, according to Insider Monkey’s database. Short interest stood at 9.51% of the float on 14 August, according to the source material.
