Dec. 16, 2025 — lululemon athletica inc. (NASDAQ: LULU) is back in the spotlight this week after a rapid-fire sequence of headlines reshaped the near-term narrative around the athleisure leader: a CEO succession plan, an earnings beat with updated guidance, an expanded share repurchase authorization, and confirmation that the company will be removed from the Nasdaq-100 during the index’s annual reconstitution.
As of 16:58 UTC on Dec. 16, LULU shares were trading at $204.26, down about 1% on the session after opening higher; the stock’s intraday range was roughly $203.50 to $208.63.
Below is the full roundup of what’s driving lululemon stock today, plus the latest company outlook and the newest Wall Street forecasts investors are parsing heading into 2026.
Lululemon stock price action on Dec. 16: a pause after a headline-driven surge
Lululemon’s recent volatility has been tightly linked to corporate and index-related catalysts rather than a single macro shock. The stock surged in the immediate aftermath of last week’s announcements around leadership and guidance, then cooled as investors weighed a complex mix of positives (buybacks, international growth) against persistent headwinds (U.S. demand softness, tariffs, and intensifying competition). [1]
From a valuation snapshot, LULU’s reported P/E ratio is about 11.3 with a market cap near $19.4 billion at today’s pricing.
(Valuation metrics vary across data providers depending on whether they use trailing vs. forward earnings and how they treat one-time items.)
The biggest catalyst: CEO Calvin McDonald to step down, interim co-CEOs named
The week’s defining headline is lululemon’s leadership transition.
The company disclosed that CEO Calvin McDonald will step down effective Jan. 31, 2026, with CFO Meghan Frank and Chief Commercial Officer André Maestrini set to serve as interim co-CEOs. Board chair Marti Morfitt is taking an expanded role as Executive Chair during the transition. [2]
The board has launched a search for a permanent CEO—an open-ended process that investors typically treat as both opportunity and risk: opportunity for a strategic reset, and risk because execution may stall while the company operates under interim leadership. [3]
Founder pressure and the governance angle
Another reason this CEO change is resonating: it arrives amid public criticism and escalating pressure from founder and major shareholder Chip Wilson, who has sharply questioned the brand’s direction and board oversight in recent months. Reuters reported Wilson had been considering a proxy fight over dissatisfaction with the company’s strategy and marketing. [4]
MarketWatch also highlighted the market’s positive initial reaction to the leadership shake-up and the founder’s continued activism. [5]
Why it matters for LULU stock: leadership transitions can act as a “permission slip” for the market to re-rate a business—especially when investors believe brand, product, and merchandising execution need a reset. But the re-rating tends to persist only if early results show measurable improvement.
Earnings and guidance: international growth offsets U.S. softness, but tariffs loom large
Lululemon’s CEO news landed alongside its third-quarter fiscal 2025 report (quarter ended Nov. 2, 2025). The results beat expectations on revenue and EPS, while also underscoring the company’s key split-screen reality: strong international momentum versus a soft Americas performance. [6]
Key Q3 fiscal 2025 figures (reported Dec. 11)
From the company’s release:
- Net revenue:$2.6 billion, +7% year over year [7]
- Americas net revenue:-2% [8]
- International net revenue:+33% [9]
- Comparable sales:+1% overall (Americas comps -5%; international comps +18%) [10]
- Diluted EPS:$2.59 (down from $2.87 a year ago, reflecting margin pressure) [11]
- Gross margin:55.6%, down 290 basis points year over year [12]
The company also reported it ended the quarter with 796 stores and inventory of about $2.0 billion, up 11% year over year (units up 4%). [13]
Updated company outlook: Q4 and full-year fiscal 2025 guidance
Lululemon provided detailed guidance that is now central to how analysts are modeling the stock:
- Q4 fiscal 2025 revenue:$3.500B to $3.585B; EPS:$4.66 to $4.76 [14]
- Full-year fiscal 2025 revenue:$10.962B to $11.047B; EPS:$12.92 to $13.02 [15]
Most notably, the company said its 2025 guidance includes an estimated $210 million reduction in income from operations tied to assumptions around higher U.S. tariffs and the removal of the de minimis exemption, net of mitigation efforts such as vendor savings and pricing actions. [16]
Why it matters for LULU stock: Even with a headline EPS raise, investors are watching the tension between (1) near-term margin pressure driven by tariffs/discounting and (2) the longer-term promise that international growth and product-cycle improvements can rebuild operating leverage.
Buyback expansion: a confidence signal (and a floor—if cash flows hold)
Alongside earnings, lululemon announced a significant increase in capital return:
- The board approved a $1.0 billion increase to the stock repurchase program (approved Dec. 3).
- As of Dec. 11, lululemon had about $1.6 billion remaining under its authorization. [17]
- During Q3, lululemon repurchased 1.0 million shares for $189 million. [18]
Why it matters for LULU stock: Buybacks can amplify EPS growth when executed at depressed valuations and can provide incremental demand in weak tape—though they don’t fix core demand or brand issues. Investors will want to see buybacks paired with evidence of a product/merchandise rebound, not just financial engineering.
Nasdaq-100 removal: what it could mean for flows and volatility into Dec. 22
One of the most time-sensitive items on the calendar: lululemon is set to be removed from the Nasdaq-100 as part of the index’s annual reconstitution, with changes effective prior to market open on Dec. 22, 2025. [19]
Reuters reported Nasdaq’s changes include removing lululemon, along with Biogen, CDW, GlobalFoundries, ON Semiconductor and Trade Desk, while adding names such as Alnylam, Seagate, and Western Digital. [20]
Why index exits matter to LULU shareholders
An index exit can create mechanical selling pressure from passive and benchmarked funds that track the Nasdaq-100, particularly around the effective date as portfolios rebalance. It can also heighten short-term volatility as event-driven traders position for flows.
However, it’s important to note: index inclusion is not a business fundamental. Over longer horizons, the stock’s direction will still hinge on revenue growth, margins, and brand momentum—especially in North America.
Analyst forecasts today: price targets rise, but most ratings remain cautious
The newest research note dated Dec. 16 points to a familiar theme: analysts are marking up targets after the Q3 beat and leadership change, but many remain on the fence until there’s clearer evidence of a U.S. turnaround.
Dec. 16 update: Daiwa raises target
A MarketBeat roundup published today says Daiwa Capital Markets raised its price target to $205 from $174 while maintaining a Neutral stance. [21]
This week’s notable Wall Street revisions (Dec. 12 cluster)
A wave of firms updated views after earnings and the CEO announcement:
- Jefferies upgraded lululemon to Hold (from Underperform) with a $170 price target, citing the CEO change as a key reset signal. [22]
- Citigroup raised its target to $210 and kept a Neutral rating. [23]
- Baird raised its target to $210 and kept a Neutral rating. [24]
- Evercore ISI raised its target to $215 while maintaining an “In Line” stance. [25]
- Truist raised its target to $200 and kept a Hold rating. [26]
- Barclays raised its target to $189 and maintained Equal Weight. [27]
- BTIG reiterated a Buy rating with a $303 price target (a more bullish outlier versus the cluster of neutral targets near ~$190–$215). [28]
How to read the Street’s current stance
The pattern in these notes is consistent:
- The bear case is no longer just “growth is slowing.” It’s that lululemon may have lost some brand clarity in the U.S. and must win back core categories (especially women’s bottoms) amid heavier competition. [29]
- The bull case increasingly leans on international momentum—including continued strength in markets like China—as a partial hedge against North American softness. [30]
- Leadership change is seen as necessary—but not sufficient. Several commentaries frame it as the start of a turnaround, not the turnaround itself. [31]
Operational reset signals investors are watching: stores, product “newness,” and the guest experience
Beyond earnings math, lululemon has been pointing to tangible operating adjustments that management believes can improve conversion and brand perception.
“Dialing back clutter” in stores
Business Insider reported lululemon is testing efforts to reduce in-store product density and make assortments feel more curated—an answer to critiques that stores had become visually cluttered and less brand-coherent in key markets. [32]
Accelerating the product cycle
Investopedia highlighted that the company is seeking a new CEO with “growth and restructuring” experience and is looking to drive more product freshness—targeting higher “newness” by spring and speeding up design cycles. [33]
Why it matters for LULU stock: In apparel, perception and cadence are financial variables. If new product resonates, it can reduce discounting, lift full-price sell-through, and stabilize gross margin—especially critical given the tariff headwind embedded in guidance. [34]
Key risks for lululemon stock into 2026
Investors evaluating LULU today are balancing a potential reset against risks that remain very real:
- Tariff and policy uncertainty: lululemon’s guidance assumes meaningful tariff-related pressure, including impacts tied to changes around de minimis treatment. [35]
- U.S. demand softness and competition: Reuters has noted that U.S. sales have been under pressure and that lululemon is battling both premium challengers and lower-priced private-label lookalikes. [36]
- Execution risk during leadership transition: interim leadership can maintain continuity, but the market often discounts “transition quarters” until a permanent CEO clarifies strategy and priorities. [37]
- Index-related volatility: passive flows around the Nasdaq-100 removal could add noise around Dec. 22. [38]
What could move LULU stock next: the near-term catalyst checklist
If you’re tracking lululemon stock closely, these are the next markers that could reprice shares:
- Holiday quarter performance vs. Q4 guidance (revenue and EPS ranges already laid out by the company). [39]
- New CEO timing and profile — particularly whether the hire signals “back-to-basics” brand focus versus broader category expansion. [40]
- Evidence that Americas trends are stabilizing — especially in core women’s categories where competitors have been taking share. [41]
- Gross margin direction — whether product and merchandising changes reduce discounting and offset tariff costs. [42]
- Capital returns cadence — buyback pace and any future authorization changes, balanced against inventory and reinvestment needs. [43]
Bottom line for Dec. 16, 2025
Lululemon stock is trading today with a market narrative that has clearly shifted from “slowdown and uncertainty” to “reset and rebuild”—but not without major caveats. The CEO transition and buyback expansion have improved sentiment, and the Q3 beat plus updated guidance reinforced the company’s ability to execute internationally. [44]
References
1. www.barrons.com, 2. corporate.lululemon.com, 3. apnews.com, 4. www.reuters.com, 5. www.marketwatch.com, 6. corporate.lululemon.com, 7. corporate.lululemon.com, 8. corporate.lululemon.com, 9. corporate.lululemon.com, 10. corporate.lululemon.com, 11. corporate.lululemon.com, 12. corporate.lululemon.com, 13. corporate.lululemon.com, 14. corporate.lululemon.com, 15. corporate.lululemon.com, 16. corporate.lululemon.com, 17. corporate.lululemon.com, 18. corporate.lululemon.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.marketbeat.com, 22. finance.yahoo.com, 23. www.tipranks.com, 24. www.tipranks.com, 25. www.investing.com, 26. www.tipranks.com, 27. www.tipranks.com, 28. www.nasdaq.com, 29. www.barrons.com, 30. corporate.lululemon.com, 31. www.barrons.com, 32. www.businessinsider.com, 33. www.investopedia.com, 34. corporate.lululemon.com, 35. corporate.lululemon.com, 36. www.reuters.com, 37. corporate.lululemon.com, 38. www.reuters.com, 39. corporate.lululemon.com, 40. www.investopedia.com, 41. www.reuters.com, 42. corporate.lululemon.com, 43. corporate.lululemon.com, 44. corporate.lululemon.com
