Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness- inspired accessories and footwear. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; recommerce; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, the People's Republic of China, Canada, Australia, the United Kingdom, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, the Netherlands, Norway, and Switzerland. The company was founded in 1998 and is based in Vancouver, Canada.

Компания lululemon athletica inc. демонстрирует сильные показатели по многим ключевым метрикам, что указывает на её устойчивость и потенциал. P/E находится ниже медианы отрасли, что может свидетельствовать о недооцененности, однако другие мультипликаторы, такие как P/S и P/B, значительно превышают медианные значения, что указывает на возможную переоцененность. При этом высокая рентабельность (ROE, ROA) и сильные операционные маржи (операционная и чистая) подтверждают высокую эффективность бизнеса. Долговая нагрузка отсутствует, что является явным плюсом для финансовой устойчивости компании. Тем не менее, отсутствие дивидендов также может ограничивать привлекательность для некоторых инвесторов. Выручка и чистая прибыль значительно превышают медианные значения, что говорит о сильном росте. В целом, несмотря на некоторые негативные аспекты, такие как высокие мультипликаторы, основная финансовая картинка остаётся позитивной, что подразумевает возможность дальнейшего роста компании.

lululemon athletica inc.

Key Points
Lululemon’s stock was cut in half over the past year.
Its sales growth is stalling out, and its margins are under pressure.
Lululemon's (NASDAQ: LULU) stock has declined 45% over the past 12 months. Investors who recall how quickly the athletic apparel maker grew in its heyday might be drawn to its stock as a turnaround play. Still, its situation probably won't improve until 2027 at the earliest.
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What happened to Lululemon?
In 2022, Lululemon launched its second "Power of Three" plan to double its men's revenues, double its digital revenues, quadruple its international revenues, and nearly double its total revenue (from $6.3 billion to $12.5 billion) from fiscal 2021 (which ended in Feb. 2022) to fiscal 2026. It set those goals after achieving its first "Power of Three" goals -- which set the same growth targets from fiscal 2018 to fiscal 2023 -- ahead of schedule.
But over the past four years, Lululemon's comparable-store sales growth has decelerated, and its gross margins have declined. In North America, its largest market, sales of women's apparel stalled as macro headwinds throttled consumer spending, the pandemic-era athleisure boom ended, and it faced fierce competition from smaller brands like Alo Yoga and Vuori.
Metric
FY 2022
FY 2023
FY 2024
FY 2025
Revenue Growth (YOY)
30%
19%
10%
5%
Comps Growth (YOY)
16%
13%
4%
2%
Gross Margin
55.4%
58.3%
59.2%
56.6%
Data source: Lululemon. YOY = Year-over-year.
That pressure forced Lululemon to use markdowns to boost sales, compressing its margins and diluting its premium appeal. Inflation and tariffs exacerbated that pressure. It fared better overseas, but that growth couldn't offset its persistent problems in North America.
To make matters worse, Lululemon lost two of its key leaders over the past year: its CEO Calvin McDonald and chief product officer Sun Choe, both of whom joined the company in 2018. It recently hired Heidi O'Neill, a former Nike (NYSE: NKE) executive, as its next CEO -- but Nike has also been struggling with many of the same challenges as Lululemon.
What will happen to Lululemon over the next few years?
For fiscal 2026, Lululemon expects revenue to grow only 2%-4% to $11.35 billion to $11.50 billion, which would miss its "Power of Three x2" target of $12.5 billion. Analysts expect its revenue to rise 3% to $11.5 billion as its EPS declines 7% to $12.31.
But for fiscal 2027, analysts expect its revenue and EPS to rise 4% and 8%, respectively, if the company achieves its near-term goals of stabilizing its North American business, selling a higher mix of full-price apparel, rolling out new products, and expanding overseas.
Lululemon's stock might seem cheap at 12 times this year's earnings, but it won't command a higher valuation until more green shoots appear. That probably won't happen for at least a few more quarters, so investors should temper their expectations for a near-term recovery.
Should you buy stock in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lululemon Investors May Have to Wait Until 2027 For a Turnaround. Here's Why.

Key Points
Warren Buffett believes in holding the right stocks forever.
While Nike has a well-known brand, it faces intense competition.
Lululemon Athletica doesn't have a permanent CEO.
You're in good company if you take a long-term approach to investing. After all, Warren Buffett, the famed Oracle of Omaha, stated that his favorite holding period is forever.
Investment success doesn't just depend on holding stocks for a very long time, of course. You have to choose companies that have the right characteristics for long-term success. This includes businesses that have competitive advantages.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Investors also need to understand the companies that they invest in. Nike (NYSE: NKE) and Lululemon Athletica (NASDAQ: LULU) have become well-known brands, which gives you a good starting place before conducting a deeper dive.
After learning more about each company, does one deserve that special place as a forever holding?
Nike
Nike, which produced some memorable commercials over the years and teamed up with some high-profile athletes, has sold popular footwear and apparel for decades. In short, it became a powerhouse brand.
The company had a competitive advantage for a long time. These included a stream of innovative and new products that kept the revenue juggernaut going.
But Nike has hit a speed bump due to management missteps. This includes an over-reliance on its direct-to-consumer business that alienated wholesale partners, a lack of new products, and more intense competition from companies like On Holding (NYSE: ONON) and Deckers Outdoor's (NYSE: DECK) Hoka brand.
You can see the effects on Nike's revenue. The company's fiscal third-quarter top line dropped 3% after excluding foreign-currency translation effects. Revenue at its core Nike brand fell 2%. The most recent quarter ended on Feb. 28.
These issues have been ongoing and weighed on the stock price. Nike's shares have dropped 62.6% over the last three years through April 20. During this period, the S&P 500 index gained 71.7%.
Nonetheless, Nike's valuation doesn't seem particularly compelling, given the issues it faces in growing revenue meaningfully again. The shares have a price-to-earnings (P/E) ratio of 31, in line with the S&P 500's multiple.
Lululemon Athletica
Lululemon Athletica makes athletic apparel, including pants and shorts. Although high-priced, these have become very popular, particularly among younger women.
With the growing popularity of its products, Lululemon's revenue grew quickly. But it has slowed recently.
The company's fiscal fourth-quarter revenue grew 4% when using the comparable number of weeks in both periods and removing foreign-currency changes. The quarter ended on Feb. 1. Management expects a tepid 2% to 4% revenue increase this year. With increased competition from lower-priced alternatives and the inability to expand its brand's reach, Lululemon faces a tough task in revving up revenue growth.
Over three years, the share price has lost 55.7%.
It's no wonder that investors aren't happy. There have been rumblings, with the company's founder, Chip Wilson, waging a battle to make changes. This includes nominating three board members. Activist investor Elliot Management has also built a stake. But right now, these create questions rather than answers to boosting growth.
None of the above
I wouldn't make Nike or Lululemon part of my forever holdings. Both face challenges with revenue growth, and they don't have easy fixes. In fact, it's extraordinarily difficult to win customers back.
Given that, I'd keep looking for that forever stock to buy.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
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*Stock Advisor returns as of April 25, 2026.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor, Lululemon Athletica Inc., Nike, and On Holding. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy and Hold Forever? Here's How Nike and Lululemon Athletica Stack Up

Key Points
Lululemon stock fell 13% after it announced former Nike exec Heidi O'Neill as its next CEO.
Both Luluemon and Nike have struggled in recent years.
O'Neill has a strong resume, but is also seen as being responsible for Nike's failed pivot to the direct-to-consumer channel.
Lululemon (NASDAQ: LULU) has been one of the best-performing apparel stocks of the century, as the company pioneered an entirely new category of clothes: athleisure.
However, over the last couple of years, the stock has been a downright disaster and is now down 72% from its all-time high at the end of 2023. Challenges facing the brand have included weakness in North America due to brand saturation, competition, and complaints about the product quality and lack of newness in its styles. Additionally, tariffs, including the removal of the de minimis exemption, hit the Canadian company hard, forcing it to rearrange its e-commerce supply chain for the U.S., where most of its revenue comes from.
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In the face of those headwinds, former CEO Calvin McDonald, who had led the company since 2018, said he would step down last December, leaving the board to search for its next CEO.
On Wednesday night, Lululemon announced that decision, naming longtime former Nike (NYSE: NKE) executive Heidi O'Neill as its next CEO, effective Sept. 8. Investors responded by dumping Lululemon shares, and the stock finished Thursday down 13.3%, wiping roughly $2 billion off its market cap.
It's not unusual for a stock to move on the announcement of a new CEO, especially when it's a high-profile company or one that's attempting a turnaround, but a double-digit percentage dive is extreme.
Did Lululemon just make a $2 billion mistake? Let's take a closer look at what O'Neill's selection means for the apparel company.
Why Lululemon chose a former Nike exec as its next leader
In the press release announcing O'Neill, the board cited "the breadth of her experience, her demonstrated success delivering breakthrough ideas and initiatives at scale, and her ability to be a knowledgeable change and growth agent."
O'Neill spent nearly 30 years at Nike, during a time when the company grew from less than $10 billion in sales to nearly $50 billion. She also previously worked at Levi Strauss, and has served on boards for companies like Spotify Technology and Hyatt Hotels.
Nike is the largest company in Lululemon's industry, and O'Neill's experience growing a company from the size of Lululemon today to a much larger business may have seemed particularly valuable to the board and likely distinguished her from other candidates.
Why investors jeered the move
While O'Neill's resume is clearly impressive with nearly three decades at Nike, it deserves some context.
Like Lululemon, Nike has struggled badly in recent years, with the stock down 75% since its peak in 2021. Nike is in the midst of its own turnaround under CEO Elliott Hill, though those efforts have yet to pay off. Hill let go of O'Neill as part of a leadership shake-up last year. O'Neill was a key leader of the direct-to-consumer (DTC) business under previous CEO John Donahoe, though the strategic shift to DTC, which neglected the traditional wholesale business, is now seen as a costly mistake by Nike that both stunted its own growth and allowed competitors like Deckers and On Holding to get more shelf space at Nike's retail partners.
It's unclear to what extent O'Neill deserves blame for that strategy, but that may explain why she is no longer with Nike.
The skepticism seems fair, but O'Neill deserves a chance
O'Neill is a seasoned industry executive. She would seem like a good fit for a healthy and growing Lululemon, but that isn't where the exercise apparel company is these days. It needs a visionary leader or a turnaround agent, someone capable of breathing new life into the brand and taking the product next level.
A leader with, say, start-up experience or who had executed a turnaround might have been seen as a better fit. Still, O'Neill deserves a chance, and her most recent experience isn't necessarily predictive of how she'll run Lululemon.
It's still several months before she takes over, and we'll hear from Lululemon at its nextearnings callin June. Some momentum in the business before O'Neill's arrival could go a long way toward improving investor sentiment toward the stock. There's still an attractive turnaround opportunity here with the stock at a price-to-earnings ratio of less than 11, but it's clear O'Neill will have to work to win over investors when she takes the reins.
Should you buy stock in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 24, 2026.
Jeremy Bowman has positions in Lululemon Athletica Inc. and Nike. The Motley Fool has positions in and recommends Deckers Outdoor, Lululemon Athletica Inc., Nike, On Holding, and Spotify Technology. The Motley Fool recommends Hyatt Hotels. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Did Lululemon Just Make a $2 Billion Mistake?

The S&P 500 Index ($SPX) (SPY) on Thursday closed down -0.41%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.57%. June E-mini S&P futures (ESM26) fell -0.42%, and June E-mini Nasdaq futures (NQM26) fell -0.59%.
Stock indexes erased early gains on Thursday and settled lower as peace talks with Iran remain in limbo. The US and Iran are locked in a battle for control of the Strait of Hormuz, with both sides blocking the waterway to gain leverage during an extended ceasefire. The US said it was waiting for a response from Iran before peace talks could restart, and Iran said it will not resume negotiations while a US naval blockade on its ports is in place. Stock losses accelerated on Thursday amid signs the war in Iran will persist after President Trump said a deal with Iran will only be made "when it's appropriate and good" for the US and its allies.
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Stock index initially moved higher on Thursday, with the S&P 500 and Nasdaq 100 posting new all-time highs amid a rally in chipmakers that boosted the broader market. Texas Instruments rose more than +19% to lead chipmakers higher after reporting strong earnings. Other positive earnings were also supportive of the market, with United Rentals up +22% and Comcast up more than +7% after reporting better-than-expected Q1 revenue. Also, Keurig Dr. Pepper rose more than +7% after reporting stronger-than-expected Q1 net sales.
The weakness in software stocks on Thursday was a negative factor for the broader market, with ServiceNow falling more than -17% after reporting disappointing earnings and saying the war in the Middle East has delayed some sales deals. Also, IBM fell more than -8% after reporting Q1 results that featured an underwhelming read for its software business.
Thursday’s US economic news was mixed for stocks. Weekly initial unemployment claims rose by +6,000 to 214,000, showing a weaker labor market than expectations of 210,000. Also, the Mar Chicago Fed national activity index fell -0.23 to a 4-month low of -0.20, weaker than expectations of -0.13. Conversely, the Apr S&P manufacturing PMI rose +1.7 to 54.0, stronger than expectations of 52.5 and the strongest level in nearly 4 years.
WTI crude oil prices (CLM26) rose more than +3% on Thursday as the Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. Gains in crude oil accelerated on Thursday after Axios reported that Iran laid more mines in the Strait of Hormuz this week, and President Trump ordered the US Navy to "shoot and kill" any Iranian boats laying mines with "no hesitation." The ongoing blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.
Earnings season continues this week. So far, 81% of the 123 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.
Overseas stock markets settled lower on Thursday. The Euro Stoxx 50 fell to a 2-week low and closed down -0.19%. China's Shanghai Composite fell from a 1.25-month high and closed down -0.32%. Japan's Nikkei Stock 225 fell from a record high and closed down -0.75%.
Interest Rates
June 10-year T-notes (ZNM6) on Thursday closed down -7.5 ticks. The 10-year T-note yield rose +1.9 bp to 4.322%. Jun T-notes fell to a 1.5-week low on Thursday, and the 10-year T-note yield rose to a 1.5-week high of 4.349%. Soaring crude oil prices on Thursday pushed inflation expectations higher and weighed on T-notes, as the 10-year breakeven inflation rate rose to a 5-week high of 2.429%. Losses in T-notes were limited after weekly US jobless claims rose more than expected, a dovish factor for Fed policy.
European government bond yields moved higher on Thursday. The 10-year German bund yield rose +0.1 bp to 3.009%. The 10-year UK gilt yield rose to a 3.5-week high of 4.973% and finished up by +2.9 bp to 4.939%.
The Eurozone Apr S&P manufacturing PMI unexpectedly rose +0.6 to 52.2, stronger than expectations of a decline to 50.9 and the fastest pace of expansion in nearly four years. However, the Apr composite PMI fell -2.1 to 48.6, weaker than expectations of 50.1 and the weakest level in 17 months.
Eurozone Mar new car registrations rose +12.5% y/y to 1.158 million units, the biggest increase in nearly two years.
The UK Apr S&P manufacturing PMI unexpectedly rose +2.6 to 53.6, stronger than expectations of a decline to 50.3 and the fastest pace of expansion in nearly four years.
Swaps are discounting a 9% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.
US Stock Movers
ServiceNow (NOW) closed down more than -17% to lead software stocks lower and lead losers in the S&P 500 after cutting its full-year subscription adjusted gross margin forecast to 81.5% from 82%, weaker than the consensus of 82.1%. Also, Workday (WDAY) closed down more than -9% to lead losers in the Nasdaq 100, and Salesforce (CRM) closed down more than -8% to lead losers in the Dow Jones Industrials. In addition, IBM (IBM) and Atlassian (TEAM) closed down more than -8%, and Intuit (INTU), Adobe Systems (ADBE), and Autodesk (ADSK) closed down more than -6%. Finally, Oracle (ORCL) closed down more than -5%, and Microsoft (MSFT) closed down -4%.
Texas Instruments (TXN) closed up more than +19% to lead chipmakers higher and gainers in the Nasdaq 100 after reporting Q1 revenue of $4.83 billion, better than the consensus of $4.53 billion, and forecasting Q2 revenue of $5.00 billion to $5.40 billion, well above the consensus of $4.85 billion. Also, ON Semiconductor (ON) and Microchip Technology (MCHP) closed up more than +9%, and NXP Semiconductors NV (NXPI) closed up more th +6%. In addition, Analog Devices (ADI) and Marvell Technology (MRVL) closed up more than +5%, and ARM Holdings Plc (ARM) closed up more than +3%. Finally, Intel (INTC) closed up more than 2%.
ASGN Inc (ASGN) closed down more than -51% after reporting Q1 revenue of $968.3 million, below the consensus of $972.9 million, and forecasting Q2 revenue of $970 million to $1.00 billion, weaker than the consensus of $1.02 billion.
Medpace Holdings (MEDP) closed down more than -22% after forecasting full-year EPS of $16.68 to $17.50, the midpoint below the consensus of $17.12.
Lululemon Athletica (LULU) closed down more than -13% on disappointment with the naming of Heidi O’Neill as the new CEO, a surprise pick with no previous experience as a CEO.
Thermo Fisher Scientific (TMO) closed down more than -9% after reporting Q1 organic revenue growth of +1.00%, weaker than the consensus of +1.17%.
Las Vegas Sands (LVS) closed down more than -8% after raising its full-year capital expenditure forecast to $1.49 billion from a previous forecast of $1.33 billion, well above the consensus of $1.27 billion.
Tesla (TSLA) closed down more than -3% after boosting its full-year capital expenditure to more than $25 billion to support its push into AI and robotics.
Honeywell International (HON) closed down more than -2% after reporting Q1 sales of $9.14 billion, below the consensus of $9.30 billion.
United Rentals (URI) closed up more than +22% to lead gainers in the S&P 500 after reporting Q1 revenue of $3.99 billion, above the consensus of $3.88 billion, and raising its full-year revenue forecast to $16.9 billion-$17.4 billion from a previous forecast of $16.8 billion-$17.3 billion, stronger than the consensus of $17.07 billion.
West Pharmaceutical Services (WST) closed up more than +12% after reporting Q1 net sales of $844.9 million, well above the consensus of $780.4 million, and raising its full-year net sales forecast to $3.30 billion-$3.35 billion from a previous estimate of $3.22 billion-$3.28 billion, better than the consensus of $3.25 billion.
Comcast (CMCSA) closed up more than +7% after reporting Q1 revenue of $31.46 billion, stronger than the consensus of $30.35 billion.
Keurig Dr. Pepper (KDP) closed up more than +7% after reporting Q1 net sales of $3.98 billion, above the consensus of $3.83 billion.
CSX Corp. (CSX) closed up more than +6% after reporting Q1 operating income of $1.25 billion, higher than the consensus of $1.14 billion.
Hasbro (HAS) closed up more than +6% after reporting preliminary Q1 net revenue of $970 million to $985 million, well above the consensus of $908.6 million.
Earnings Reports(4/24/2026)
Charter Communications Inc (CHTR), First Hawaiian Inc (FHB), Gentex Corp (GNTX), Hasbro Inc (HAS), HCA Healthcare Inc (HCA), Norfolk Southern Corp (NSC), Procter & Gamble Co/The (PG), SLB Ltd (SLB), Southern Copper Corp (SCCO), Western Union Co/The (WU).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower on US-Iran Stalemate

The S&P 500 Index ($SPX) (SPY) today is up +0.07%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.03%. June E-mini S&P futures (ESM26) are up +0.07%, and June E-mini Nasdaq futures (NQM26) are up +0.10%.
Stock indexes recovered from early losses today and are trading slightly higher as a rally in chipmakers gives the broader market a boost. Texas Instruments is up more than +16% to lead chipmakers higher after reporting strong earnings. Other positive earnings results are also liftin stocks, with United Rentals up +20% and Comcast up more than +7% after reporting better-than-expected Q1 revenue. Also, Keurig Dr. Pepper is up more than +6% after reporting stronger-than-expected Q1 net sales.
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Stock indexes initially moved lower today as peace talks with Iran remain in limbo. The US and Iran are locked in a battle for control of the Strait of Hormuz, with both sides blocking the waterway to gain leverage during an extended ceasefire. The US said it was waiting for a response from Iran before peace talks could restart, and Iran said it will not resume negotiations while a US naval blockade on its ports is in place. Higher crude oil prices are raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield climbing to a 1.5-week high of 4.34%.
The weakness in software stocks is also pressuring the broader market today, with ServiceNow down more than 16% after reporting disappointing earnings and saying the war in the Middle East has delayed some sales deals. Also, IBM is down more than -9% after reporting Q1 results that featured an underwhelming read for its software business.
Today’s US economic news was mixed for stocks. Weekly initial unemployment claims rose by +6,000 to 214,000, showing a weaker labor market than expectations of 210,000. Also, the Mar Chicago Fed national activity index fell -0.23 to a 4-month low of -0.20, weaker than expectations of -0.13. Conversely, the Apr S&P manufacturing PMI rose +1.7 to 54.0, stronger than expectations of 52.5 and the strongest level in nearly 4 years.
WTI crude oil prices (CLM26) are up nearly +1% today as the Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. The blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.
Earnings season continues this week. So far, 79% of the 101 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 2-week low and is down -0.05%. China's Shanghai Composite fell from a 1.25-month high and closed down -0.32%. Japan's Nikkei Stock 225 fell from a record high and closed down -0.75%.
Interest Rates
June 10-year T-notes (ZNM6) today are down -1 tick. The 10-year T-note yield is up +0.2 bp to 4.305%. Jun T-notes fell to a 1.5-week low today, and the 10-year T-note yield rose to a 1.5-week high of 4.337%. An increase in inflation expectations is weighing on T-notes, as the 10-year breakeven inflation rate rose to a 1-month high of 2.409% today. T-notes recovered most of their losses after weekly US jobless claims rose more than expected, a dovish factor for Fed policy.
European government bond yields are moving higher today. The 10-year German bund yield is up +0.5 bp to 3.013%. The 10-year UK gilt yield rose to a 3.5-week high of 4.973% and is up by +1.0 bp to 4.920%.
The Eurozone Apr S&P manufacturing PMI unexpectedly rose +0.6 to 52.2, stronger than expectations of a decline to 50.9 and the fastest pace of expansion in nearly four years. However, the Apr composite PMI fell -2.1 to 48.6, weaker than expectations of 50.1 and the weakest level in 17 months.
Eurozone Mar new car registrations rose +12.5% y/y to 1.158 million units, the biggest increase in nearly two years.
The UK Apr S&P manufacturing PMI unexpectedly rose +2.6 to 53.6, stronger than expectations of a decline to 50.3 and the fastest pace of expansion in nearly four years.
Swaps are discounting a 10% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.
US Stock Movers
Texas Instruments (TXN) is up more than +16% to lead chipmakers higher and gainers in the Nasdaq 100 after reporting Q1 revenue of $4.83 billion, better than the consensus of $4.53 billion, and forecasting Q2 revenue of $5.00 billion to $5.40 billion, well above the consensus of $4.85 billion. Also, ON Semiconductor (ON) is up more than +9%, and Microchip Technology (MCHP) is up more than +7%. In addition, NXP Semiconductors NV (NXPI) and Analog Devices (ADI) are up more than +6% and Marvell Technology (MRVL) and ARM Holdings Plc (ARM) are more than +4%. Finally, Intel (INTC) is up more than 2%.
ServiceNow (NOW) is down more than -16% to lead software stocks lower and lead losers in the S&P 500 after cutting its full-year subscription adjusted gross margin forecast to 81.5% from 82%, weaker than the consensus of 82.1%. Also, IBM (IBM) is down more than -8% to lead losers in the Dow Jones Industrials, and Workday (WDAY) is down more than -8% to lead losers in the Nasdaq 100. In addition, Atlassian (TEAM) is also down more than -11%, and Salesforce (CRM) is down more than -8%. Finally, Intuit (INTU) and Adobe Systems (ADBE) are down more than -7%, Autodesk (ADSK) is down more than -6%, and Oracle (ORCL) is down more than -4%.
United Rentals (URI) is up more than +20% to lead gainers in the S&P 500 after reporting Q1 revenue of $3.99 billion, above the consensus of $3.88 billion, and raising its full-year revenue forecast to $16.9 billion-$17.4 billion from a previous forecast of $16.8 billion-$17.3 billion, stronger than the consensus of $17.07 billion.
West Pharmaceutical Services (WST) is up more than +12% after reporting Q1 net sales of $844.9 million, well above the consensus of $780.4 million, and raising its full-year net sales forecast to $3.30 billion-$3.35 billion from a previous estimate of $3.22 billion-$3.28 billion, better than the consensus of $3.25 billion.
Hasbro (HAS) is up more than +8% after reporting preliminary Q1 net revenue of $970 million to $985 million, well above the consensus of $908.6 million.
Comcast (CMCSA) is up more than +7% after reporting Q1 revenue of $31.46 billion, stronger than the consensus of $30.35 billion.
Keurig Dr. Pepper (KDP) is up more than +6% after reporting Q1 net sales of $3.98 billion, above the consensus of $3.83 billion.
CSX Corp. (CSX) is up more than +6% after reporting Q1 operating income of $1.25 billion, higher than the consensus of $1.14 billion.
ASGN Inc (ASGN) is down more than -41% after reporting Q1 revenue of $968.3 million, below the consensus of $972.9 million, and forecasting Q2 revenue of $970 million to $1.00 billion, weaker than the consensus of $1.02 billion.
Medpace Holdings (MEDP) is down more than -22% after forecasting full-year EPS of $16.68 to $17.50, the midpoint below the consensus of $17.12.
Lululemon Athletica (LULU) is down more than -11% on disappointment of the naming of Heidi O’Neill as the new CEO, a surprise pick with no previous experience as a CEO.
Thermo Fisher Scientific (TMO) is down more than -8% after reporting Q1 organic revenue growth of +1.00%, weaker than the consensus of +1.17%.
Las Vegas Sands (LVS) is down more than -8% after raising its full-year capital expenditure forecast to $1.49 billion from a previous forecast of $1.33 billion, well above the consensus of $1.27 billion.
Tesla (TSLA) is down more than -2% after boosting its full-year capital expenditure to more than $25 billion to support its push into AI and robotics.
Honeywell International (HON) is down more than -1% after reporting Q1 sales of $9.14 billion, below the consensus of $9.30 billion.
Earnings Reports(4/23/2026)
American Express Co (AXP), Ameriprise Financial Inc (AMP), Baker Hughes Co (BKR), Blackstone Inc (BX), CBRE Group Inc (CBRE), CenterPoint Energy Inc (CNP), Comcast Corp (CMCSA), Comfort Systems USA Inc (FIX), Digital Realty Trust Inc (DLR), Dover Corp (DOV), Dow Inc (DOW), Edwards Lifesciences Corp (EW), Erie Indemnity Co (ERIE), Freeport-McMoRan Inc (FCX), Hartford Insurance Group Inc/The (HIG), Honeywell International Inc (HON), Huntington Bancshares Inc/OH (HBAN), Intel Corp (INTC), Keurig Dr Pepper Inc (KDP), Lockheed Martin Corp (LMT), Nasdaq Inc (NDAQ), Newmont Corp (NEM), NextEra Energy Inc (NEE), PG&E Corp (PCG), Pool Corp (POOL), Principal Financial Group Inc (PFG), PulteGroup Inc (PHM), Roper Technologies Inc (ROP), Snap-on Inc (SNA), Thermo Fisher Scientific Inc (TMO), Union Pacific Corp (UNP), VeriSign Inc (VRSN), West Pharmaceutical Services Inc (WST).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Indexes Recover on Strength in Chipmakers

lululemon athletica inc. LULU has lost momentum in recent months, with its shares recording a 15.3% decline in the past three months. lululemon’s recent performance points to a business that is losing traction, particularly in its core North America market, which helps explain the stock’s sharp decline. Although the company posted modest revenue growth and an earnings beat in fourth-quarter fiscal 2025, underlying demand trends were weak, with North America sales flat to down and comparable sales slipping as heavy markdowns eroded full-price momentum. Margin pressure intensified as tariffs and discounting weighed significantly on profitability, underscoring that growth is becoming more costly to maintain.
LULU’s 15.3% stock decline is greater than the Textile - Apparel industry and the Consumer Discretionary sector’s decline of 2.5% and 2.1%, respectively, in the past three months. The stock also underperformed the S&P 500’s gain of 1.4% in the same period.
LULU’s performance is significantly weaker than that of Kontoor Brands, Inc. KTB, Columbia Sportswear Company COLM and Ralph Lauren Corporation RL, which rallied 30%, 17% and 4.1%, respectively, in the past three months.
LULU’s 3-Month Price Performance
Image Source: Zacks Investment Research
At the current share price of $163.45, lululemon trades 13.5% above its 52-week low of $143.96. Meanwhile, LULU stock’s price is 52% below its 52-week high of $340.25. Moreover, the stock trades below its 50 and 200-day moving averages, indicating a bearish near and long-term sentiment.
LULU Stock Trades Below 50 and 200-Day Moving Averages
Image Source: Zacks Investment Research
What’s Hindering lululemon’s Growth?
lululemon’s growth is being constrained by a combination of regional weakness, margin pressure and execution challenges. The most significant drag is North America, where sales trends remain soft and comparable sales declined, reflecting weaker demand and an overreliance on markdowns to drive volume. Elevated discounting has diluted the brand’s premium positioning and hurt full-price sell-through, forcing the company to reset its pricing and inventory strategy.
Margins are under further pressure from external cost headwinds, particularly tariffs, which had a substantial negative impact on product margins and overall profitability. At the same time, higher investments in marketing, store operations and technology are driving expense deleverage, limiting earnings growth despite stable top-line performance.
The company is still in a transition phase. Management has acknowledged the need to improve product innovation, accelerate speed to market and refine assortments, indicating prior missteps in merchandising and execution. While new product launches and brand activations are generating early positive signals, these efforts will take time to scale. Combined with cautious consumer behavior and uneven regional demand, these factors continue to weigh on lululemon’s near-term growth trajectory.
Here’s How Estimates Are Shaping Up for LULU
The Zacks Consensus Estimate for lululemon’s fiscal 2026 and 2027 EPS decreased 0.4% and 0.3%, respectively, in the past 30 days. The downward revision in earnings estimates indicates that analysts are skeptical about the company’s near-term growth potential.
For fiscal 2026, the Zacks Consensus Estimate for LULU’s revenues implies 3.5% year-over-year growth, while the EPS estimate suggests a 6.9% decline. The consensus mark for fiscal 2027 revenues and earnings indicates 5.6% and 8.9% year-over-year growth, respectively.
Image Source: Zacks Investment Research
LULU’s Valuation Picture
lululemon’s forward 12-month price-to-earnings (P/E) multiple is 12.99X. This multiple is lower than the industry average of 18.55X and the S&P 500’s average of 21.87X, making the stock appear relatively cheap.
The company is trading at a lower valuation than some of its competitors. Its peers, such as Columbia Sportswear and Ralph Lauren, are delivering solid growth and trade at higher multiples than LULU. Columbia Sportswear and Ralph Lauren have forward 12-month P/E ratios of 17.2X and 20.69X —significantly higher than LULU. Meanwhile, Kontoor Brands trades at a lower multiple of 11.51X.
Image Source: Zacks Investment Research
Are lululemon’s Long-Term Growth Fundamentals Intact?
Despite near-term challenges, lululemon’s long-term growth fundamentals remain largely intact, supported by strong brand equity, product innovation and global expansion opportunities. The company continues to hold a leading position in premium activewear, particularly as the top women’s brand in the United States, while maintaining a loyal and engaged customer base. Its international business, especially in China and other emerging markets, remains a key growth driver, delivering robust momentum and offering a long runway for expansion.
lululemon is also investing in innovation and operational improvements, including increasing product newness, enhancing quality and shortening its go-to-market cycle. Digital capabilities, AI integration and targeted brand activations are expected to strengthen customer engagement over time.
However, management acknowledges that rebuilding full-price momentum and stabilizing North America will take time. While execution risks persist, the company’s strategic initiatives and global diversification provide a solid foundation for sustainable long-term growth.
Is LULU Stock Still a Buy Option?
lululemon’s recent stock performance reflects clear near-term weakness, as investors have grown more cautious about the company’s ability to quickly restore momentum in its core business. That caution is reinforced by negative estimate revisions, which suggest that the market remains skeptical about near-term earnings delivery and the pace of recovery.
The stock’s cheaper valuation could still appeal to investors who believe in lululemon’s long-term growth story, supported by its brand strength, international runway and innovation pipeline. For now, however, the risk-reward appears balanced rather than compelling.
Existing shareholders may be better served by holding the stock and closely tracking management’s execution, especially around North America, full-price selling and margin recovery, before increasing exposure. New investors, meanwhile, may want to watch for clearer signs that this Zacks Rank #3 (Hold) company’s strategic initiatives are translating into more durable growth and earnings stability before getting on board. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

lululemon Declines 15% in 3 Months: A Buy Opportunity or Value Trap?

(RTTNews) - Lululemon Athletica Inc. (LULU) said on Wednesday it has appointed Heidi O'Neill as its next Chief Executive Officer, effective September 8, 2026, following a comprehensive search process.
O'Neill, a longtime Nike Inc. (NKE) executive, brings over three decades of experience in brand strategy, product innovation, and global operations. She will also join the company's Board of Directors upon assuming the role.
She most recently served as President, Consumer, Product & Brand at Nike, where she played a key role in scaling the business and strengthening its global consumer engagement.
"lululemon is an iconic brand with something rare: genuine guest love, a product ethos rooted in innovation, and a global platform still in the early stages of its potential," said Ms. O'Neill. "As I step into the CEO role in September, my job will be to build on that foundation - to accelerate product breakthroughs, deepen the brand's cultural relevance, and unlock growth in markets around the world. I am humbled by the opportunity and energized by what the team is already building. I look forward to joining the company and helping to define and deliver the organization's next chapter of success."
Meghan Frank and André Maestrini will continue to lead as interim co-CEOs until Ms. O'Neill joins the company. At that time, Ms. Frank and Mr. Maestrini plan to return to their previous senior leadership roles and work closely with Ms. O'Neill and the rest of the leadership team to drive momentum forward.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lululemon Appoints Heidi O'Neill As CEO

NIKE, Inc.’s NKE efforts to fix its inventory situation are likely to show progress, but they have not yet translated into a meaningful boost in global profitability. The company has been making progress in reducing excess inventory and better aligning supply with demand. NKE is actively clearing unhealthy inventory while focusing on high-impact areas that can drive its recovery.
The company has prioritized strengthening its “Sport Offense,” particularly in running and global football. It emphasized athlete-focused innovation, building a scalable product across several sports and price points. NIKE is revitalizing its wholesale business and aiming to regain market share and improve product flow through solid partnerships.
The company has been removing unhealthy inventory of its classic footwear franchises from the marketplace. It is aggressively clearing excess inventory and reducing exposure to classic footwear franchises, leading to higher discounts and unfavorable product mix, both of which are hurting profitability. Gross margin has been impacted by supply-chain cost deleverage, heavier promotions and channel mix headwinds.
NIKE is actively taking steps to manage inventory and safeguard brand health, but these efforts continue to weigh on gross margins. Although the turnaround is progressing more slowly than anticipated, the company remains confident in its strategy and expects to complete the “Win Now” initiatives by the end of 2026. NIKE’s “Win Now” strategy drives sharper execution, stronger innovation and a disciplined operational reset.
In a nutshell, NKE’s inventory cleanup is an important step toward long-term recovery, but it remains a work in progress. The company has managed to stabilize operations, yet a full recovery in profitability will depend on restoring pricing power, normalizing regional performance and achieving a healthier sales mix.
NKE's Competition
lululemon athletica inc.’s LULU efforts to streamline inventory focus on tightening supply-demand alignment, reducing excess stock and maintaining premium pricing. These efforts help the company protect margins while supporting more consistent growth. LULU’s omnichannel capabilities, including buy-online-pickup-in-store and ship-from-store, which improve convenience and inventory productivity, have been aiding its performance. lululemon continues to benefit from the progress in its Power of Three X2 growth strategy.
adidas AG's ADDYY strategy focuses on strengthening brand appeal, driving product innovation, improving operational efficiency and accelerating growth. ADDYY prioritizes operational efficiency, inventory discipline and sustainability to improve profitability and long-term competitiveness. adidas is implementing strategies to manage the impact of rising tariffs, supply-chain costs and sourcing pressures while protecting profitability and maintaining competitive positioning.
NKE’S Price Performance, Valuation and Estimates
Shares of NIKE have lost 32.7% over the past six months compared with the industry’s decline of 29%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 24.44X compared with the industry’s average of 21.58X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year plunge of 29.6%, while that for fiscal 2027 indicates growth of 27.2%. The company’s EPS estimate for fiscal 2026 and fiscal 2027 have moved south over the past 30 days.
Image Source: Zacks Investment Research
NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are NIKE's Inventory Fixes Boosting Global Profitability Yet?

lululemon athletica inc.’s LULU long-term growth story increasingly hinges on its ability to expand beyond its traditional women’s yoga wear roots. As competition intensifies in core categories, the company is sharpening its focus on underpenetrated segments such as footwear and men’s apparel, which offer significant white-space opportunities. These categories not only diversify revenue streams but also strengthen brand relevance among broader consumer groups, positioning lululemon for its next phase of growth.
Men’s wear, in particular, remains a compelling growth engine for the company. The category has continued to gain traction, with men’s revenues rising 3% year over year in fourth-quarter 2025, reflecting steady consumer demand despite macro pressures. Management has emphasized innovation-driven product launches and expanded assortment depth to drive engagement, supported by strong responses to new training and lifestyle collections. The company is also increasing product “newness” across its assortment, targeting roughly 35% new styles in 2026, which is expected to further stimulate interest among male customers and reinforce category momentum.
Footwear represents another strategic frontier that could materially enhance lululemon’s growth trajectory over time. While still in its early stages relative to apparel, footwear allows the company to deepen customer relationships and extend its technical innovation capabilities into adjacent categories. Combined with the steady expansion of men’s wear, footwear has the potential to boost average transaction values and improve brand stickiness. If execution remains disciplined and innovation continues to resonate with consumers, these emerging categories could play a pivotal role in powering lululemon’s next growth chapter.
LULU’s Competitors
NIKE, Inc. NKE is one of the world’s largest athletic footwear and apparel companies, known for its strong brand equity, innovation-driven product pipeline and expansive global distribution network. The company generates the majority of its revenues from footwear, supported by apparel and equipment sales across sports and lifestyle categories. NIKE continues to focus on product innovation, digital expansion and direct-to-consumer channels to strengthen customer engagement and improve margins. Its investments in performance technologies, athlete endorsements and digital platforms have helped sustain leadership in key markets, although NIKE continues to navigate demand volatility and competitive pressures in certain regions.
adidas AG ADDYY is a leading global sportswear manufacturer headquartered in Germany, recognized for its performance-driven footwear, apparel and accessories. The company has been executing strategic initiatives to enhance brand desirability, streamline operations and improve profitability following recent operational challenges. adidas has placed greater emphasis on innovation, sustainability and lifestyle-driven collections to appeal to younger consumers and expand market share. With improving brand momentum and disciplined inventory management, adidas is working to rebuild growth across key markets while strengthening its competitive position against major industry players.
LULU’s Price Performance, Valuation & Estimates
Shares of lululemon have lost 7.8% in the past six months compared with the industry’s fall of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.33X compared with the industry’s average of 18.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LULU’s fiscal 2026 earnings implies a year-over-year drop of 6.9%, while that of fiscal 2027 shows growth of 8.9%. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has moved down in the past 30 days.
Image Source: Zacks Investment Research
lululemon stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Footwear and Men's Wear Power lululemon's Next Chapter?

Key Points
Lululemon's sales rose by just under 1% last quarter.
Growing competition has been weighing on its business, and it faces an uncertain path forward.
The stock, however, trades at a significant discount.
Lululemon Athletica (NASDAQ: LULU) has lost close to half of its valuation over the past five years. Investors have been dumping the stock in droves due to multiple reasons, and now, it's trading at levels it hasn't been at since 2020.
The business has been facing challenges, but the brand is arguably still strong, especially among teens and young adults. Warren Buffett once said that he likes to buy companies when they're in "temporary trouble," as it can lead to significant returns later on. Are Lululemon's problems temporary, and could this be a fantastic time to buy the stock?
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The big problem with Lululemon, summed up in a single chart
There really isn't a mystery as to why Lululemon's stock is crashing; it's simply not the growth stock that it has been in the past. The chart below shows a deeply troubling trend, with Lululemon's growth cratering in recent years, down to just under 1% in its most recent quarter.
The more crucial question, however, is the why. The growth rate was elevated before 2022 when pandemic-fueled spending gave it a large boost. But even in recent years, it has been coming down. Rising inflation has likely weighed on its growth, as consumers have pivoted to cheaper options. Plus, the rise of fast fashion and the availability of comparable clothing options from online retailers in China have made it difficult for consumers to justify paying more for Lululemon's branded products.
While the company still has devoted followers who are loyal to the brand, the big challenge for Lululemon is reaching a broader range of customers amid the flurry of options.
Lululemon stock may be cheap, but it's not worth buying today
Shares of Lululemon are currently trading at just 12 times earnings, which is a hefty discount and underscores investors' concerns about the business. If it can't find a way to return to strong growth, it'll be difficult to win over investors. The rise in competition is concerning, and without a clear path forward, taking a chance on Lululemon stock will come with significant risks.
The company is also in the midst of searching for a new CEO after Calvin McDonald stepped down earlier this year. At the very least, you may want to wait until there's clarity on both the leadership position within the business and Lululemon's strategy moving forward. For now, however, I'd steer clear of the stock as it may still go lower this year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	13.12 19.97
Price/Sales	1.87 0.67
P/B	4.47 1.90
P/FCF	18.82 14.25

Indicator	TTM Median
ROE	34.84 14.36
ROA	20.15 4.93
ROI	0.00 8.43
Net Worth	20.45 0.88
Quick Ratio	1.36 0.89
Current Ratio	2.26 1.44

Indicator	TTM Median
Net Profit Margin	14.23 5.66
Operating Margin	19.91 8.28
Gross Margin	56.60 38.46
Return on tangible equity	41.48 21.54

Indicator	TTM Median
EPS	3.10 0.45
EPS Forecast	2.84 0.42
Revenue	3.64B 186.50M
Gross Profit	2.00B —
EBITDA	563.00M —

lululemon athletica inc.

Recent quarterly and TTM performance

Valuation

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Revenue