NEW YORK, August 8, 2026, 14:11 EDT — U.S. markets have finished trading.
- Shares ended at $128.58, gaining 3.1% on Friday and advancing 8.2% over the week.
- Net revenue growth in the first quarter was driven 153% by China Mainland and Rest of World.
- Analysts maintain a Hold consensus. The average target of $123.01 is below Friday’s closing price.
lululemon athletica inc. NASDAQ:LULU settled at $128.58 on Friday, climbing 3.1%. Shares added 8.2% for the week on a close-to-close basis. The advance has outpaced analysts’ forecasts for earnings.
The key investor focus has shifted beyond the Americas. Mainland China and the Rest of World contributed $154.3 million in revenue during the first quarter, accounting for 153% of the group’s total net gain. Revenue in the Americas declined by $53.3 million.
The share of international revenue increased to 34.4%, up from 29.4% in the prior year. However, profit trends diverged: China posted a higher margin, while Rest of World saw a decline of 350 basis points.
The filing from the company highlights the regional differences shown below.
| Q1 2026 segment | Revenue | YoY dollar change | YoY change | Revenue mix | Operating margin | Margin change |
|---|---|---|---|---|---|---|
| Americas | $1.621 billion | -$53.3 million | -3.2% | 65.6% | 25.2% | -1,000 bp |
| China Mainland | $478.4 million | +$110.3 million | +30.0% | 19.4% | 42.4% | +70 bp |
| Rest of World | $372.0 million | +$44.0 million | +13.4% | 15.1% | 18.7% | -350 bp |
| Group total | $2.472 billion | +$100.9 million | +4.3% | 100.0% | 11.2% | -730 bp |
*The total row reflects consolidated operating margin.
Korea is part of Rest of World, a segment including APAC and EMEA. Lululemon announced on Friday that it has reopened its first Cheongdam store. The retailer now operates 26 stores in Korea along with a regional distribution center. Financial details were not provided.
The stock advanced in four out of five sessions before recording three consecutive increases. Trading volume on Friday was 2.79 million shares, roughly 18% under the 65-day average.
Daily trading figures illustrate the progression of the rally.
| Session | Closing price | Daily move | Volume |
|---|---|---|---|
| July 31 | $118.87 | down 0.51% | 2.52 million |
| August 3 | $123.67 | up 4.04% | 2.36 million |
| August 4 | $123.03 | off 0.52% | 2.16 million |
| August 5 | $123.51 | up 0.39% | 1.86 million |
| August 6 | $124.73 | up 0.99% | 2.22 million |
| August 7 | $128.58 | rising 3.09% | 2.79 million |
Valuation continues to reflect significant skepticism. Lululemon is valued at 10.4 times its trailing earnings. Nike, Inc. NYSE:NKE holds a multiple of 27.6 times, while Deckers Outdoor Corporation NYSE:DECK trades at 13.3 times trailing earnings.
Friday’s peer split is reflected in the latest market data.
| Company | Friday close | Friday move | Market value | Trailing P/E |
|---|---|---|---|---|
| lululemon athletica inc. NASDAQ:LULU | $128.58 | up 3.1% | $14.85 billion | 10.4x |
| Nike, Inc. NYSE:NKE | $41.70 | down 0.7% | $61.78 billion | 27.6x |
| Deckers Outdoor Corporation NYSE:DECK | $97.46 | off 0.4% | $13.50 billion | 13.3x |
| On Holding AG NYSE:ONON | $37.55 | a gain of 0.6% | $11.99 billion | N/A |
| Under Armour, Inc. NYSE:UAA | $6.11 | fell 4.6% | $2.64 billion | Not meaningful |
Under Armour shares dropped after the company issued a softer annual revenue forecast. Revenue in North America declined 9% in the most recent quarter. “A difficult sportswear market right now,” Morningstar, Inc. NASDAQ:MORN analyst David Swartz said. The implications are not clear-cut. Regional demand appears to remain unstable. Reuters
Analysts maintain a defensive stance. According to FactSet Research Systems Inc. NYSE:FDS, the number of Sell ratings has risen to four from just one three months prior. The overall consensus is still Hold.
| Recommendation | Current | Three months ago | Change |
|---|---|---|---|
| Buy | 3 | 3 | — |
| Overweight | 1 | 1 | — |
| Hold | 27 | 28 | -1 |
| Underweight | 0 | 0 | — |
| Sell | 4 | 1 | +3 |
| Total coverage | 35 | 33 | +2 |
The mean price target stands at $123.01, compared to Friday’s closing price of $128.58. This leaves the stock trading 4.5% higher than the average estimate. Analyst price targets span from $88 to $154.
JPMorgan Chase & Co. NYSE:JPM analyst Matthew Boss increased his price target to $154 from $149 on August 4, maintaining a Neutral rating. The new target equals the highest currently set.
Management continues to set modest expectations. The company’s outlook for second-quarter revenue points to a drop of 2% to 3%. Forecasts for diluted earnings range between $1.76 and $1.81 per share, down from $3.10 in the same period last year.
Lululemon forecasts full-year revenue to be flat or decrease by up to 1%. The company projects earnings between $10.95 and $11.15 per share. This places Lululemon’s valuation at approximately 11.6 times the midpoint of its earnings outlook.
Interim co-CEO Meghan Frank stated the yoga initiative “hasn’t had the expected halo effect” on additional products. Heidi O’Neill, who will become chief executive, takes over on September 8. Reuters
Three external data points are expected next week. On Holding will announce results ahead of the U.S. market open on Tuesday. July’s consumer inflation report is due Wednesday, followed by the release of producer price figures on Thursday.
| Date | Scheduled event | Investor read-through |
|---|---|---|
| August 11 | On Holding Q2 earnings, pre-market | Trends in high-end sportswear and geographic performance |
| August 12 | U.S. July CPI, 08:30 EDT | Implications for consumer spending and outlook for interest rates |
| August 13 | U.S. July PPI, 08:30 EDT | Movements in input expenses and margins |
Risks: A swifter rebound in the Americas may rapidly narrow the valuation gap. Conversely, if momentum stalls, this risk is significant. Additional margin compression could result from tariffs, subdued consumer spending, or disappointing product response. Growth in international revenue without equivalent profit would undermine the basis for a rerating.
The rally on Friday boosted sentiment but did not change the earnings outlook. Growth and margin are both being driven by China. The Rest of World now needs to demonstrate it can deliver on both fronts.
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