Lululemon presents a tactical buy opportunity after an overdone sell-off, trading at just 10.18x forward earnings. Key headwinds—tariffs, intensifying competition, and leadership changes—are largely temporary, with tariff relief and a new CEO as potential catalysts. LULU's international business, especially in China, is delivering robust growth, offsetting weak North American performance and underpinning future upside.

VANCOUVER, British Columbia--(BUSINESS WIRE)--lululemon (NASDAQ:LULU) today announced the opening of the first lululemon stores in Greece through its franchise partnership with Arion Retail Group. The first store location will open tomorrow, Saturday, May 23, 2026, at Akadimias 17 & Voukourestiou in Kolonaki, central Athens. A second store location is set to open on Friday, June 12, 2026, at the Golden Hall shopping mall. The opening of these stores represents an important step in lululemon.

Lululemon (LULU) reached $126.76 at the closing of the latest trading day, reflecting a +1.25% change compared to its last close.

lululemon faces significant narrative and operational headwinds ahead of Q1 earnings, with deep negative sentiment and downward estimate revisions. Q1 sales are expected to grow just 3% y/y to $2.44 billion, with EPS guidance of $1.63–$1.68, both below analyst consensus. Despite pessimism, LULU has a strong track record of beating estimates, but a standard beat may not be enough to lift shares given volatility and negative sentiment.

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VANCOUVER, British Columbia--(BUSINESS WIRE)--lululemon athletica inc. (NASDAQ: LULU) today announced that its financial results for the first quarter fiscal 2026 will be released Thursday, June 4, 2026. The company will host a conference call at 4:30 p.m. Eastern time to discuss the financial results. If you would like to participate in the call, please dial (833) 752-3550 or (647) 846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of.

After reaching an all-time high of $516.39 in December 2023, lululemon athletica inc. is now caught in a ~75% drawdown, the second largest since the company's IPO in July 2007. Using today's closing price of $125.19, lululemon is currently trading at ~9.4x the forward earnings of $13.34 per share expected in fiscal 2027. China is now the company's key growth engine, with impressive top-line growth at scale and even better profitability metrics when compared to the core North American business.

Big Short investor Michael Burry is aggressively reallocating capital toward beaten-down stocks, warning the artificial intelligence (AI) boom increasingly resembles the dot-com era. According to him, a remarkable 87% of venture funding now targets AI, creating what he dubs an “asset bubble – plain and simple”.

A surprise note from the company's chair marked an escalation of the fight after the two sides appeared close to coming to terms.

When there is a fight over control of a public company, one would hope the winner would drive change and, with it, raise the stock price.