Lululemon Athletica Inc. · LULU · FY2027 Q1 · Calendar Q2 2026

Lululemon Q1 FY2027: Revenue Beat Overshadowed by Guidance Cut, 6% North America Comp Decline

Lululemon posted a narrow Q1 FY2027 beat — revenue of $2.47B exceeded the $2.44B estimate by 1.4% and EPS of $1.69 topped the $1.67 estimate by 1.2%. However, comparable sales fell 2% as North America comps declined 6%, and management lowered full-year revenue guidance from the prior 2-4% growth range to flat-to-down-1%. Gross margin is expected to compress approximately 90 bps due to tariff costs and seasonal clearance. The stock recorded a -6.0% abnormal move on 4.6x baseline volume. Management's tone shifted from confident to cautious (bullish score 68 to 55), reflecting a spike in negative brand commentary, ongoing tariff pressure, and a CEO transition with Heidi O'Neill joining in September. The action plan — faster product development (12-14 months), 20% more chase volume, ~15% SKU reductions, and higher marketing spend — is directionally sound but unproven at scale against…

Reported After market closeNASDAQConsumer Cyclical $13.57B market cap
100quality score

Company context

Snapshot as of publication

Lululemon Athletica Inc., alongside its subsidiaries, specializes in the design, global distribution, and retail of athletic apparel and accessories for both women and men. Its business operations are structured into two main divisions: company-owned retail establishments and direct-to-consumer sales. The firm's offerings encompass a range of clothing such as pants, shorts, tops, and jackets, all crafted for promoting a healthy lifestyle and facilitating athletic endeavors. These activities span yoga, running, training, and other physically demanding pursuits. Beyond apparel, Lululemon also supplies fitness-related accessories and a selection of footwear. Customers can acquire Lululemon products through numerous channels. These include a global network of corporate-managed stores, outlet locations, and seasonal warehouse sales.…

Earnings scorecard

Reported versus consensus
Reported EPS $1.69 Consensus $2
EPS surprise +1.2% Reported versus consensus
Reported revenue $2.47B Consensus $2.44B
Revenue surprise +1.4% Reported versus consensus

Earnings History

Estimate Beat Miss Match
LULU EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q4 '24 estimate $5.00 Q4 '24 actual $5.29, beat Q1 '25 estimate $2.38 Q1 '25 actual $2.54, beat Q2 '25 estimate $2.93 Q2 '25 actual $3.15, beat Q1 '26 estimate $2.58 Q1 '26 actual $2.60, beat Q2 '26 estimate $2.91 Q2 '26 actual $3.10, beat Q3 '26 estimate $2.22 Q3 '26 actual $2.59, beat Q4 '26 estimate $4.76 Q4 '26 actual $5.01, beat Q1 '27 estimate $1.67 Q1 '27 actual $1.69, beat Q2 '27 estimate $1.83 Q3 '27 estimate $2.44 Q4 '27 estimate $5.01 Q1 '28 estimate $1.68
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Analyst Consensus ?

ConsensusHold68 ratings
Bullish2841.2%
Neutral3551.5%
Bearish57.3%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$118.22Current
$88Low
$336.43Average
$542High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 31, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Wells Fargo Equal Weight Equal WeightMaintainJul 21, 2026
Truist Securities Sell HoldDowngradeJul 16, 2026
Citigroup Neutral NeutralMaintainJun 10, 2026
UBS Neutral NeutralMaintainJun 5, 2026
Telsey Advisory Group Market Perform Market PerformMaintainJun 5, 2026
Stifel Hold HoldMaintainJun 5, 2026
Piper Sandler Neutral NeutralMaintainJun 5, 2026
Needham Hold HoldMaintainJun 5, 2026
Show 61 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $118.22. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Truist FinancialAnalyst unavailable$94$117.42 -20.5%Jul 16, 2026
Morgan StanleyAnalyst unavailable$93$113.49 -21.3%Jul 6, 2026
Truist FinancialJoseph Civello$115$116.05 -2.7%Jun 5, 2026
BNP ParibasAnalyst unavailable$88$124.92 -25.6%Jun 5, 2026
BernsteinAnalyst unavailable$145$124.92 +22.7%Jun 5, 2026
Piper SandlerAnna Andreeva$110$114.71 -7.0%Jun 5, 2026
Stifel NicolausPeter McGoldrick$134$124.92 +13.3%Jun 5, 2026
Wells FargoIke Boruchow$110$124.92 -7.0%Jun 5, 2026
JefferiesAnalyst unavailable$115$124.92 -2.7%Jun 5, 2026
Wells FargoAnalyst unavailable$140$124.92 +18.4%Jun 5, 2026
See 128 more

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Market reaction

event-close to next-session close
Stock move -8.6% Event window
SPY move -2.6% Same window
Abnormal move -6.0% Stock minus SPY
Volume 4.6× Versus trailing sessions
Subsequent drift +0.7% Up to 20 sessions
LULUSPY benchmark

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Transcript intelligence

What changed

Q1 FY2027 revenue grew 4% year-over-year to $2.47B, narrowly beating the $2.44B consensus. EPS of $1.69 also beat the $1.67 estimate. However, comparable sales fell 2%, driven by a 6% decline in North America. Management lowered full-year revenue guidance from 2-4% growth to flat-to-down-1%, and expects gross margin to compress approximately 90 bps due to tariffs and higher seasonal clearance. The stock dropped with a -6.0% abnormal move against a -2.6% benchmark move on 4.6x normal volume. Management tone shifted from confident to cautious versus the prior quarter.

Guidance delta

Full-year revenue guidance was lowered from the 2-4% growth range issued in Q4 FY2025 to flat-to-down-1%. Gross margin is now expected to compress approximately 90 bps year-over-year, reflecting tariff costs and higher seasonal clearance. Guidance sentiment shifted from maintained to lowered. CapEx outlook moved from decreasing to stable.

Key takeaways

  • Q1 revenue of $2.47B beat the $2.44B estimate by 1.4%, and EPS of $1.69 beat the $1.67 estimate by 1.2%, but comparable sales fell 2%.
  • North America comparable sales declined 6%, extending the full-price sales challenge flagged in the prior quarter.
  • Full-year revenue guidance was cut from 2-4% growth to flat-to-down-1%, with gross margin expected to compress approximately 90 bps.
  • China remained a bright spot with continued strong growth, while management emphasized faster product development and a 20% increase in chase volume.
  • New CEO Heidi O'Neill will join in September, and the board has added several new directors.
  • Negative social media and media commentary spiked in Q1, impacting traffic across regions.

Management priorities

  • Reviving North America full-price sales and comparable store performance
  • Accelerating product development cycle to 12-14 months and increasing chase volume by 20%
  • Reducing SKU count by approximately 15% to improve product focus and reduce markdowns
  • Increasing marketing spend and community-driven brand activations including Great Wall yoga, SeaWheeze, and Summer Sweat Games
  • Onboarding new CEO Heidi O'Neill in September for strategic continuity
  • Opening approximately 13 net new stores in Q2 with focus on Mexico and China

Related earnings events

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Sources

  1. Earnings call transcript and parsed analysis · 2026-06-05T07:23:52.623593+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-31T12:32:09.120286+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T12:32:09.117386+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.