Is the Lululemon Dip a Buy? The Bull and Bear Case After Earnings, Guidance

• Lululemon (LULU) bushed Q4 net with $3.64B gross and $5.01 diluted EPS, portion planetary gross grew 22% for the twelvemonth with China Mainland comparable income up 30% successful Q4, but the banal remains down 51.3% arsenic full-year 2026 guidance forecasts lone 2% to 4% gross maturation and $12.10 to $12.30 EPS versus $13.26 earned successful FY2025.

• Lululemon faces deteriorating North American sales, compressed margins, enactment instability with interim co-CEOs, a founder-led proxy fight, and unquantified tariff headwinds, leaving analysts waiting for clarity earlier shifting outlooks.

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Lululemon Athletica (NASDAQ: LULU) reported Q4 fiscal 2025 net aft the adjacent connected March 17, 2026, delivering beats connected some gross and net per share. The stock's absorption was muted, and it remains nether important pressure. Shares are trading adjacent their 52-week debased of $156.64, down 51.3% implicit the past year. The stock's crisp diminution has drawn attraction from some bulls and bears, with the result depending heavy connected which acceptable of facts carries much weight.

Lululemon bushed estimates wherever it counted. Q4 gross came successful astatine $3.64B, up of the $3.576B estimate, portion diluted EPS of $5.01 besides topped expectations. International momentum is real: planetary gross grew 22% for the afloat year, with China Mainland comparable income up 30% successful Q4. Geographic diversification is becoming a genuine maturation motor for Lululemon.

Governance is softly improving. Chip Bergh, erstwhile president and CEO of Levi Strauss, joined the committee effectual March 13, 2026, bringing heavy planetary retail and branding expertise. New merchandise lines, including Unrestricted Power and ShowZero, are entering the marketplace successful 2026 with aboriginal affirmative impermanent effect noted by management.

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Valuation has compressed dramatically. The trailing P/E present sits astatine conscionable 11x, unusually debased for a marque with Lululemon's humanities pricing power. The expert statement people terms is $205.88, implying meaningful upside from existent levels. The basal lawsuit exemplary people is $205.56, representing 29.1% upside.

The guidance is the problem. Full-year 2026 gross maturation is forecast astatine conscionable 2% to 4%, and FY2026 diluted EPS guidance of $12.10 to $12.30 implies a diminution from the $13.26 earned successful FY2025. That is not a betterment story. That is simply a institution guiding investors to expect less.