Published: December 14, 2025
Lululemon Athletica Inc. stock (NASDAQ: LULU) is back in the spotlight this weekend after a dramatic end to last week: the company posted a better-than-expected third quarter, expanded its share repurchase authorization, and announced a major leadership transition—with CEO Calvin McDonald set to step down at the end of January 2026. [1]
Adding a fresh catalyst dated December 14, 2025, Lululemon is also now on the list of companies set to be removed from the Nasdaq-100 as part of the index’s annual reconstitution (effective December 22, 2025). That kind of index change can create near-term technical pressure or volatility as passive funds rebalance. [2]
As of the latest available trading update, LULU was around $204.97 per share, with the move reflecting the sharp pop investors saw after the earnings-and-CEO news hit.
Below is a detailed, publication-ready breakdown of the most relevant news, forward-looking guidance, analyst forecasts, and investor takeaways as of December 14, 2025.
What’s driving Lululemon stock right now
Three themes are dominating coverage and analyst chatter around LULU stock:
- Better-than-expected Q3 results (but with ongoing weakness in the Americas and margin pressure) [3]
- A CEO transition that investors are treating as a potential “reset moment” for a brand that has struggled in the U.S. market in 2025 [4]
- Near-term technical headline risk from the upcoming Nasdaq-100 removal [5]
That mix—fundamentals, leadership, and index mechanics—helps explain why the stock has suddenly become a high-traffic ticker again.
Q3 fiscal 2025 results: international strength offsets a softer Americas business
In its third quarter of fiscal 2025 (ended November 2, 2025), Lululemon reported:
- Net revenue up 7% to $2.6 billion
- Americas net revenue down 2%
- International net revenue up 33%
- Comparable sales up 1% (Americas comps down 5%; international comps up 18%) [6]
The headline for investors is straightforward: the growth engine is increasingly international, while the company works through a tougher competitive and demand backdrop in North America. Reuters and other outlets have framed the challenge as Lululemon fighting to re-energize its U.S. business amid rivals ranging from premium upstarts to legacy athleticwear giants. [7]
Profitability, however, remains a pressure point. The company reported gross margin down 290 basis points to 55.6% and operating income down 11%, reflecting a tougher promotional environment and higher costs. [8]
Guidance update: higher full-year EPS forecast, but cautious holiday-quarter outlook
Alongside results, Lululemon updated its outlook:
Fourth quarter (fiscal 2025) guidance
- Revenue:$3.500B to $3.585B
- Representing a decline of 3% to 1%, or growth of 2% to 4% excluding the 53rd week of 2024
- Diluted EPS:$4.66 to $4.76 [9]
Full-year (fiscal 2025) guidance
- Revenue:$10.962B to $11.047B
- Diluted EPS:$12.92 to $13.02 [10]
A key line in the fine print is tariffs and trade-policy risk. Lululemon said its 2025 guidance includes an estimated $210 million reduction in income from operations (net of mitigation actions), tied to assumptions about higher U.S. tariffs on imports and the removal of the de minimis exemption. [11]
That matters for LULU stock because it turns “macro” into “math”: even if demand stabilizes, policy-driven cost headwinds can squeeze margins.
Buyback boost: why investors care about the $1.6B remaining authorization
Lululemon also highlighted shareholder returns:
- In Q3, it repurchased 1.0 million shares for $189.0 million
- The board approved a $1.0 billion increase to the repurchase program on December 3, 2025
- As of December 11, 2025, Lululemon had about $1.6 billion remaining authorized for buybacks [12]
Buybacks can support EPS and send a “confidence” signal—especially when a stock is down sharply year-to-date—but they don’t solve the core operating question investors are asking: can Lululemon re-accelerate product momentum in the U.S. without sacrificing premium brand positioning? [13]
CEO stepping down: leadership change becomes the new thesis pivot
The biggest headline in Lululemon news flow is leadership.
What Lululemon announced
- CEO Calvin McDonald plans to step down as CEO and board member effective January 31, 2026
- He’ll serve as a senior advisor through March 31, 2026
- Board chair Marti Morfitt becomes executive chair immediately
- CFO Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs
- The board is running a comprehensive CEO search with an executive search firm [14]
Why the market reacted positively
Multiple reports describe investors as hoping a CEO change can trigger a strategic reset after a year in which the stock lost roughly half its value and the company struggled to regain traction with U.S. shoppers. [15]
The coverage also underscores tension with founder and major shareholder Chip Wilson, who has criticized execution and succession planning—adding an activism/proxy-fight “tail risk” that can keep the stock volatile around governance headlines. [16]
Operational “reset” signals: less clutter, faster product cadence, more newness
A theme emerging from earnings-call coverage is that Lululemon is attempting to fix not only product assortment, but also how the brand shows up in stores.
Business Insider reported management commentary indicating Lululemon is reducing product density in stores to address criticism that the shopping experience had become cluttered and inconsistent, with pilots mentioned in markets such as Los Angeles and Miami. [17]
Meanwhile, Investopedia highlighted that Lululemon is seeking a CEO with “growth and restructuring experience,” and described operational goals such as increasing product “newness” and accelerating development cycles—moves that implicitly acknowledge the market’s critique that the brand has leaned too heavily on older styles. [18]
This is the key fundamental debate for LULU stock going into 2026: Is the slowdown a temporary execution issue—or evidence that the U.S. athleisure category has matured and become structurally more competitive? [19]
Analyst forecasts and price targets: targets rise, but “Neutral/Hold” dominates
After earnings and the CEO announcement, several Wall Street firms adjusted their views—often raising price targets while keeping neutral ratings, which signals “less downside than before,” not necessarily “high conviction upside.”
Notable examples in the current cycle of updates include:
- UBS raised its price target to $206 from $183, maintaining a Neutral rating [20]
- BofA Securities raised its price target to $220 from $185, maintaining a Neutral rating [21]
- Baird raised its price target to $210 from $195, keeping a Neutral rating [22]
- Truist raised its price target to $200 from $170, maintaining Hold [23]
- Jefferies upgraded Lululemon to Hold (from Underperform) and lifted its price target to $170 (from $120), citing the CEO departure as meaningful [24]
Why this matters for SEO readers tracking a “lululemon stock forecast”: the post-earnings narrative isn’t uniformly bullish. It’s closer to: “valuation is more reasonable and expectations have reset, but execution risk remains.” [25]
New headline dated Dec. 14: Lululemon set to be removed from the Nasdaq-100
On December 14, 2025, MarketWatch and Reuters coverage around the Nasdaq-100 rebalance highlighted that Lululemon is among the companies being removed, with changes effective December 22, 2025. [26]
Nasdaq’s own investor-relations release describing the annual index changes also lists Lululemon Athletica among the removals. [27]
What that can mean for LULU stock
- Potential short-term selling pressure from index funds and ETFs that must track the Nasdaq-100
- Increased volatility around the effective date as passive and active managers reposition
- A psychological hit to “mega-cap momentum” perception—though fundamentals and guidance remain the longer-term drivers
Importantly, index inclusion is not a measure of business quality on its own; it’s largely a function of market cap ranking and index rules. Still, the timing—immediately after a major corporate reset announcement—adds another moving part for investors to digest.
The bull case vs. bear case for lululemon stock as of Dec. 14, 2025
Bull case (why investors are stepping back in)
- International growth is strong, helping offset U.S. softness [28]
- Buyback authorization expanded, supporting shareholder returns [29]
- Leadership transition could catalyze faster strategic changes and product improvements [30]
- After a steep decline in 2025, some analysts argue the stock is pricing in a lot of bad news already [31]
Bear case (what can still go wrong)
- Americas comps down 5% in Q3—proof the core market remains challenged [32]
- Margin pressure from promotions and costs is real, and guidance embeds material tariff impacts [33]
- Leadership transitions can create execution gaps and “wait-and-see” behavior inside organizations
- Nasdaq-100 removal can add technical turbulence even if fundamentals improve [34]
Key dates and catalysts investors are watching next
If you follow Lululemon stock news closely, these are the dates currently most likely to drive headlines:
- Dec. 22, 2025: Nasdaq-100 reconstitution changes take effect (Lululemon removed) [35]
- Jan. 31, 2026: CEO transition effective date (McDonald steps down; interim co-CEOs take over) [36]
- Late March 2026: Next earnings report window (calendar estimates vary by source) [37]
Bottom line: LULU stock is in “reset mode,” and the next chapter depends on U.S. execution
As of December 14, 2025, Lululemon stock is trading less like a steady premium growth compounder and more like a turnaround-in-progress: international strength and buybacks are supporting the story, but the company still needs to prove it can restore momentum in its core U.S. market while navigating tariffs, promotions, and shifting consumer tastes. [38]
The CEO transition is the market’s chosen catalyst—yet leadership alone won’t be enough. Investors will be watching for concrete signs in 2026 that Lululemon’s product pipeline, store presentation, and brand clarity are improving fast enough to justify a sustained re-rating of the stock. [39]
References
1. corporate.lululemon.com, 2. www.marketwatch.com, 3. corporate.lululemon.com, 4. corporate.lululemon.com, 5. www.marketwatch.com, 6. corporate.lululemon.com, 7. www.reuters.com, 8. corporate.lululemon.com, 9. corporate.lululemon.com, 10. corporate.lululemon.com, 11. corporate.lululemon.com, 12. corporate.lululemon.com, 13. www.reuters.com, 14. corporate.lululemon.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.businessinsider.com, 18. www.investopedia.com, 19. www.reuters.com, 20. www.investing.com, 21. www.investing.com, 22. www.tipranks.com, 23. www.investing.com, 24. finance.yahoo.com, 25. www.barrons.com, 26. www.marketwatch.com, 27. ir.nasdaq.com, 28. corporate.lululemon.com, 29. corporate.lululemon.com, 30. corporate.lululemon.com, 31. www.barrons.com, 32. corporate.lululemon.com, 33. corporate.lululemon.com, 34. ir.nasdaq.com, 35. ir.nasdaq.com, 36. corporate.lululemon.com, 37. www.investing.com, 38. corporate.lululemon.com, 39. www.businessinsider.com
