Zacks Research lowers Lululemon Athletica’s Q3 2025 earnings per share estimates

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Lululemon Athletica ($NASDAQ:LULU) Inc. is a multinational retail company specializing in athletic apparel and accessories. Lululemon is known for its high-quality, stylish and functional products, catering to a wide range of athletic activities such as yoga, running, and training. Lululemon’s financial performance has also been strong, with consistent revenue growth and profitability.

However, Zacks Research analysts have recently revised their Q3 2025 earnings per share projections for the company, lowering their estimates. While Lululemon has managed to maintain strong sales during the pandemic through its e-commerce channels, the closure of brick-and-mortar stores and disruptions in supply chains may have affected their earnings. Moreover, with the uncertainty surrounding the future of the pandemic and its potential impact on consumer spending, Zacks Research analysts may have taken a more conservative approach in their projections for Lululemon’s Q3 2025 earnings per share.

Additionally, Lululemon has been facing increasing competition in the activewear market from both traditional and new players. With more options available to consumers, Lululemon may have to invest more in marketing and promotions to maintain its market share and drive sales, which could impact its bottom line. Despite the revised estimates, Lululemon’s long-term growth prospects remain positive. The company has a strong brand and a loyal customer base, which could help it bounce back from the potential short-term challenges. Moreover, with a focus on expanding its global presence and diversifying its product offerings, Lululemon has the potential for continued growth in the future. Investors should keep an eye on the company’s upcoming earnings report to gain a better understanding of its financial performance and any potential impact on its stock value.

Earnings

Zacks Research, a leading financial analysis and investment research firm, has recently lowered its earnings per share estimates for Lululemon Athletica for the third quarter of fiscal year 2025. This comes after the company’s earning report for the third quarter of fiscal year 2024, which ended on October 31, 2021. During this period, Lululemon Athletica reported a total revenue of 1450.42 million USD and a net income of 187.79 million USD.

However, these numbers show a decrease compared to the previous year, with a 21.9% decrease in total revenue and a 26.5% decrease in net income. As a company that primarily sells athletic and leisurewear, Lululemon Athletica was affected by the closures of gyms and retail stores during lockdowns. This may have led to a decline in consumer demand and subsequently, a decrease in revenue and net income. Despite this recent decline, Lululemon Athletica has shown significant growth over the past three years. In the last three years, the company’s total revenue has increased from 1450.42 million USD to 2204.22 million USD, demonstrating its strong performance and potential for future growth. In conclusion, Zacks Research’s decision to lower Lululemon Athletica’s earnings per share estimates for the third quarter of fiscal year 2025 reflects the company’s current financial performance and potential challenges it may face in the future. However, with its track record of growth and strong brand reputation, Lululemon Athletica remains a key player in the athletic and leisurewear industry.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Lululemon Athletica. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Lululemon Athletica. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Lululemon Athletica. More…

Key Ratios Snapshot

Some of the financial key ratios for Lululemon Athletica are shown below. More…

Market Price

On Friday, LULULEMON ATHLETICA‘s stock experienced a small increase of 2.54%, opening at $261.01 and closing at $266.76. This news may have come as a surprise to investors, as Lululemon has been consistently beating earnings expectations in recent years.

However, it seems that Zacks Research has a more cautious outlook for the company’s future performance. The lowered earnings per share estimates may be a result of various factors, such as changes in consumer trends or economic conditions. It could also be attributed to potential challenges in the company’s supply chain or manufacturing processes. It is important to note that Zacks Research’s estimate is just one of many opinions in the market, and it does not necessarily reflect the overall sentiment towards Lululemon’s financials. However, it is worth considering as investors make decisions about their holdings in the company. Despite this recent development, Lululemon remains a strong contender in the athletic apparel industry, with a loyal customer base and a successful e-commerce strategy. The company has also been expanding into new markets and diversifying its product offerings, which could potentially drive growth in the long term. As always, it is crucial for investors to do their own research and carefully analyze all available information before making any decisions about their investments. While the lowered earnings per share estimates from Zacks Research may cause some concern, it is important to look at the bigger picture and evaluate Lululemon’s overall financial health and future prospects. Live Quote…

Analysis

After conducting a thorough analysis of LULULEMON ATHLETICA, I have found that the company has a very high well-being rating. This is due to its strong cash flow and low debt, which has earned it a health score of 10 out of 10 on our Star Chart. This suggests that LULULEMON ATHLETICA is in a strong financial position and is capable of paying off its debt as well as funding future operations. In addition, LULULEMON ATHLETICA is classified as a “gorilla” company, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This is a promising sign for investors, as it indicates that the company has a strong position in the market and is likely to continue to see growth and success in the future. Overall, LULULEMON ATHLETICA is a company that is attractive to a variety of investors. Those who are interested in stable and high earning growth may find this company appealing due to its “gorilla” classification. Additionally, investors who prioritize a healthy balance sheet and strong cash flow may also be drawn to LULULEMON ATHLETICA due to its high health score. It should be noted, however, that LULULEMON ATHLETICA may not be the best fit for investors looking for regular dividend payments. This is because the company is weak in this area, likely due to its focus on using its profits to continue fueling growth and maintaining a strong financial position. In conclusion, LULULEMON ATHLETICA is a well-managed company with a strong financial standing and competitive advantage. Its high well-being rating and “gorilla” classification make it an attractive option for investors seeking growth and stability, while those prioritizing dividends may want to look elsewhere. More…

Peers

Lululemon Athletica Inc is a yoga-inspired, technical athletic apparel company for women. The company operates in the United States, Canada, and Australia. Lululemon Athletica Inc’s main competitors are Buckle Inc, Citi Trends Inc, and Tilly’s Inc.

– Buckle Inc ($NYSE:BKE)

Buckle Inc is a leading retailer of casual apparel, footwear, and accessories for young men and women in the United States. As of 2022, the company has a market capitalization of 1.77 billion dollars and a return on equity of 55.65%. Buckle Inc operates over 450 stores in 44 states across the country, and offers its products through its website and catalog. The company’s mission is to provide great fashion at a great value for its customers.

– Citi Trends Inc ($NASDAQ:CTRN)

Citi Trends Inc is a value-priced retailer of urban fashion apparel, accessories and home décor. The company operates over 600 stores in 31 states. Citi Trends’ mission is to be the largest and most convenient source of trend-right fashion at the right price for our target demographic of urban youth.

– Tilly’s Inc ($NYSE:TLYS)

Tilly’s Inc is a company that operates in the retail industry. The company has a market cap of 239.38M as of 2022 and a return on equity of 19.35%. The company operates through two segments: stores and e-commerce. The company offers a variety of products including apparel, footwear, and accessories for men, women, and children. The company operates stores in California, Arizona, Nevada, and Texas.

Summary

Zacks Research has lowered their earnings per share estimates for Lululemon Athletica Inc. in Q3 of 2025. This decrease is likely due to various factors such as market trends, company performance, and industry competition. As an investor, it is important to consider these factors in order to make informed decisions about buying or selling Lululemon stock.

This decrease in earnings per share may be a cause for concern for investors, but it is also important to note that it is just an estimate and may change in the future. Investors should continue to monitor the company’s performance and market trends before making any investment decisions.