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.

lululemon has a strong balance sheet and high profitability, but the market is no longer paying as generously for these qualities as it once did. A P/E of 9.63 is notably below the industry median, which looks like an argument for undervaluation; however, a P/S of 1.01 and a P/B of 2.23 are above industry benchmarks and show that, in terms of revenue and book value, the valuation does not look cheap. It is especially important that the multiples have generally declined over recent periods: P/S and P/B have pulled back significantly from higher levels, while P/FCF has also improved to 8.33, supporting the idea of a more moderate valuation. At the same time, earnings and margin trends are deteriorating: net profit margin fell from 16.38 to 12.78, operating margin from 22.89 to 17.84, and gross margin from 59.10 to 56.11. This means operating efficiency remains high, but the trend is no longer as strong as it was a year ago, which limits the potential for re-rating. ROE of 29.73 and ROA of 16.97 are still very strong and materially above the industry, confirming the quality of the business and its ability to generate profits on capital. Liquidity looks comfortable: a current ratio of 2.19 and a quick ratio of 1.29 are above average levels, and debt is practically absent, which sharply reduces financial risk. The absence of long-term debt is a major plus for resilience, especially in a cyclical consumer segment. On the other hand, EBITDA and operating income in the latest points are below their peak levels, and revenue after strong levels looks less dynamic than before. Equity and assets remain significant, but their growth no longer appears to be accelerating, so the fundamentals support stability rather than an aggressive upward revision. There is no dividend, meaning investors do not receive additional support through yield, and the entire valuation rests on business growth and multiples. Overall, the picture for investors is moderately positive in terms of balance sheet quality and profitability, but with signs of cooling operating momentum and a valuation that is not especially cheap in terms of revenue and book value. Therefore, a small conservative downward revision is warranted rather than a sharp change in the view on the company.

lululemon athletica inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос

Lululemon remains financially strong and nearly debt-free, but margins and profitability are declining, while its valuation based on revenue and the balance sheet no longer looks cheap.

NIKE, Inc. NKE is relying on product innovation and a stronger focus on sport to rebuild momentum after a challenging period for its Sportswear business. In fiscal 2026, NIKE Brand footwear revenues were essentially flat at $29.5 billion on a reported basis and declined 2% on a currency-neutral basis. The weakness was more pronounced in Greater China, where footwear sales fell 13% on a reported basis and 15% on a currency neutral basis.
However, the recovery is unlikely to depend mainly on product launches. NIKE Direct revenues declined 6% in fiscal 2026, while NIKE Brand Digital fell 12%, indicating that distribution and consumer engagement remain important challenges. NIKE expects Sportswear to remain under pressure in fiscal 2027, with improvement anticipated in the second half. The category’s sell-through remains challenged, contributing to higher discounting and weaker future order books. Sportswear and Jordan Streetwear together account for roughly half of NIKE’s revenues, making their recovery important to restoring sustainable top-line growth.
Nevertheless, the company is responding by reshaping its footwear portfolio. In the second half of fiscal 2027, NIKE plans to introduce over a dozen new Sportswear footwear styles, emphasizing innovation, fresh silhouettes and distinct consumer experiences rather than relying primarily on retro franchises. The company removed more than $2 billion of classic footwear franchises from the market in fiscal 2026 as part of this repositioning.
NIKE has further emphasized its “Sport Offense” strategy, which seeks to create a more complete product portfolio, strengthen connections with athletes and consumers, and improve marketplace execution. The company said that progress was already visible in performance products during fiscal 2026.
New footwear could therefore help NIKE refresh consumer interest, improve full-price sell-through and reduce reliance on older franchises. A stronger performance-running portfolio could also create opportunities to attract consumers beyond traditional Sportswear offerings and generate renewed brand excitement. Hence, successful launches, supported by effective marketing, wholesale partnerships and improved digital execution, could provide an important foundation for rebuilding Sportswear momentum.
NKE’s Peers
lululemon athletica inc. LULU is putting greater emphasis on product newness, technical performance and innovation. LULU has been specifically increasing the frequency and breadth of new styles while maintaining its premium positioning. lululemon is leveraging its innovation platform and expanding beyond traditional yoga and core categories into areas such as running, training, tennis, golf, hiking and footwear.
adidas AG’s ADDYY innovation strategy is centered on athlete-led product development, advanced technologies, local consumer insights and a combination of performance innovation with lifestyle appeal. adidas is pursuing a broad-based growth strategy centered on product innovation, performance and lifestyle relevance. ADDYY is strengthening key performance categories such as Running, Football and Training through new technologies and athlete-focused products, while simultaneously refreshing its Lifestyle portfolio.
NKE’S Price Performance, Valuation and Estimates
Shares of NIKE have lost 28% in the past six months compared with the industry’s decline of 23.3%.
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 19.57X compared with the industry’s average of 17.32X.
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 5.1% and 30.6%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past seven days.
NIKE stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Will New Footwear Launches Help NIKE Rebuild Sportswear Momentum?

Key Points
The stock’s precipitous fall has resulted in a single-digit P/E ratio -- a huge discount to the overall market.
Lululemon recently reported a rare year-over-year revenue decline, a disappointing result.
Management faces an uphill battle to try and right the ship, as it won’t be easy to return to durable growth.
It's hard to imagine that Lululemon Athletica (NASDAQ: LULU) was once one of the best performing stocks on the market. Over the five-year stretch leading up to their all-time high in December 2023, shares had catapulted 321% higher.
But it's been a wildly disappointing story since then. This consumer discretionary stock currently trades 80% below that record (as of Sept. 24). The investment community has soured on this business due to a streak of poor financial results.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Here's one metric that highlights just how bearish Wall Street has become on Lululemon.
Shares trade at a sizable discount to the overall market
Because the stock price has tumbled, it trades at an extremely cheap valuation. Investors can buy Lululemon shares by paying a price-to-earnings (P/E) ratio of 8.3. Compared to the S&P 500 index, this is a 64% discount.
Wall Street has become pessimistic toward this business, as the valuation demonstrates. The current P/E multiple is near the cheapest level in the company's almost entire two-decade public history. And it's significantly below the trailing 10-year average of 41.3.
Market participants that fall into the value investing camp might be interested in this opportunity. However, there are valid reasons to proceed with extreme caution. Once a thriving company, Lululemon is facing immense challenges.
Cheap for a reason
Growth has slowed dramatically. The business had an incredible streak going of posting double-digit year-over-year revenue gains. Then in fiscal 2026 (ended Feb. 1), the top line expanded by just 5%. During the most recent fiscal quarter (Q2 ended Aug. 2), Lululemon reported a rare revenue dip of 4%.
The sell-side analyst community expects tough times ahead. The consensus view is that the company's fiscal 2028 revenue will be $10.7 billion. This would be almost 4% lower than fiscal 2025's total. That's a stark reversal of fortunes, as revenue jumped 37% from fiscal 2022 to fiscal 2025.
Demand has come under pressure. Sales of women's leggings, the company's bread and butter, fell 20% in Q2. Comparable sales in China, historically a major growth market, were down 2%.
Despite positioning itself as a premium brand, Lululemon is realizing that competition is persistently fierce. Numerous rivals are all vying to capture consumer wallet share. And it has to place product innovation back at the center of its strategy. Customers need fresh assortments to constantly be excited about.
The uncertain macro environment isn't helping, either. Inflation remains elevated. And the Federal Reserve just hiked its fed funds interest rate. Tighter monetary conditions don't bode well for discretionary spending behavior. Lululemon faces an uphill battle.
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 $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% 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 September 27, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.

Lululemon (LULU) Stock Is 80% Below Its All-Time High: 1 Metric That Shows How Bearish Wall Street Has Become.

Key Points
The Vanguard S&P 500 ETF has produced a total return of 319% in the past decade, driven by the impressive rise of the information technology sector.
Lululemon shares are trading 80% off their peak, pressured by another quarter of disappointing financial results.
Investors should follow the simple approach of buying and holding the Vanguard S&P 500 ETF, which provides exposure to all sectors of the U.S. economy.
With a tiny expense ratio of 0.03% and total assets of $1.8 trillion, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is arguably the best investment for those who want exposure to the broad U.S. market. Tracking the S&P 500 index, the popular exchange-traded fund (ETF) has generated a total return of 319% over the past decade (as of Sept. 24). And it's currently only 1% off its all-time high, which was established in August.
Is the Vanguard S&P 500 ETF a better buy right now than Lululemon (NASDAQ: LULU) stock, which is trading for under $105 per share? The answer is an emphatic "yes!"
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Struggling mightily in the premium athleisure category
Since Sept. 3, when it reported results for its fiscal 2026 second quarter (which ended Aug. 2), the apparel stock has fallen by 17%. That continued a troubling losing streak for the retail stock, which now trades 80% off its December 2023 peak.
For the quarter, Lululemon posted a 4% year-over-year revenue decline, propelled by a 9% slide in same-store sales. Net income tanked 11%. Whether it's a lack of product freshness, intense competition here in the U.S., or inflationary pressures harming consumers' spending power, the Canada-based athleisure apparel business has been struggling mightily.
Value investors might not be deterred by that. With a beaten-down price-to-earnings ratio of 8.3, Lululemon shares look cheap. If you believe that management can quickly turn things around, driving multiple expansion for the stock, then adding it to your portfolio today makes sense. However, that's a risky bet.
Follow the simple approach
Although the Vanguard S&P 500 ETF is near an all-time high, it's the superior investment. Forget about gambling on a potential rebound from a clothing company and stick to a simple approach that has reliably built wealth in the long run.
It's almost impossible to predict when Lululemon's revenue and profits will return to healthy growth. Investors can avoid the need to analyze individual companies' prospects by buying and holding the Vanguard S&P 500 ETF. By owning this fund, you diversify your investment across companies that account for around 80% of the value of the U.S. stock market.
Information technology is the most prominent sector in the fund, with a weighting of about 38%. This should come as no surprise. Businesses like Nvidia, Apple, and Microsoft have dominated their end markets for years, and achieved enormous market caps along the way. And the ongoing artificial intelligence infrastructure build-out is adding a powerful tailwind that can support their success in the future.
There are valid concerns about the S&P 500 index's valuation. However, this is not the time to adopt a bearish outlook. More than a decade ago, there were worries about the benchmark index's valuation and the impact it could have on its returns from there. That didn't get in the way of the market's superb performance streak in the years since.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, 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 Vanguard S&P 500 ETF 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 $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% 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 September 27, 2026.
Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.

Is VOO Near an All-Time High a Better Buy Than Lululemon Stock Trading Under $105 Per Share?

Key Points
Motley Fool analysts argue that Lululemon leadership is downplaying clear competitive and operating challenges.
Investors are weighing higher governance risk with potential activist pressure and board changes ahead.
Sharp criticism of Lululemon (NASDAQ: LULU) leadership highlights rising risks to governance, credibility, and execution for investors. Discover why management's messaging, board stability, and upcoming operating metrics could shape the stock's next major move in the video below.
*This video was published on Sep. 7, 2026.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
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 $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% 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 September 27, 2026.
Alicia Alfiere, MBA has positions in Lululemon Athletica Inc. Jim Gillies has positions in Lululemon Athletica Inc. Jim Mueller, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.

Lululemon's Leadership Just Got Called Out: What Governance Turmoil Could Mean for Investors

Key Points
Heavy discounting and stressed wholesale partners are making athletic-apparel turnarounds hard to judge.
Investors eye Nike’s recovery by tracking channel inventory, promotions, and wholesale sell-through.
Athletic apparel faces heavy discounting, strained wholesale channels, and tough turnaround conditions, even for giants like Nike (NYSE: NKE). See how partner performance, inventory, and margins shape risk and opportunity in this space by watching the discussion below.
*This video was published on Sep. 21, 2026.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
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 $389,154!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,303!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 214% 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 September 23, 2026.
Jim Gillies has positions in Lululemon Athletica Inc. and Winmark. Lou Whiteman has no position in any of the stocks mentioned. Matt Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike and Winmark. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is Nike a Buy in a "Dumpster Fire" Athletic-Apparel Market?

Nike (NYSE: NKE) and Lululemon (NASDAQ: LULU) are two of the worst-liked stocks in the market right now, judging by the price action.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
*Stock prices used were the afternoon prices of Sept. 20, 2026. The video was published on Sept. 22, 2026.
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 $395,625!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,397,147!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 214% 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 September 22, 2026.
Parkev Tatevosian, CFA has positions in Lululemon Athletica Inc. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Should Investors Buy Nike Stock Instead of Lululemon?

Cintas Corporation CTAS is scheduled to release first-quarter fiscal 2027 (ended August 2026) results on Sept. 23, before market open.
The Zacks Consensus Estimate for CTAS’ fiscal first-quarter revenues is pegged at $2.97 billion, indicating growth of 9.2% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.35 per share, which has been stable in the past 60 days. The figure indicates growth of 12.5% from the year-ago quarter's figure.
The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 1.8%. In the last reported quarter, its earnings of $1.29 per share beat the consensus estimate of $1.24 by 4%.
Let’s see how things have shaped up before Cintas’ fiscal first-quarter earnings release.
Factors to Note Ahead of CTAS’ Results
Strong customer retention and penetration of additional products and services into existing customers are expected to have driven the Uniform Rental and Facility Services segment’s performance in the fiscal first quarter. The Zacks Consensus Estimate for the segment’s revenues is pegged at $2.27 billion, indicating an 8.7% jump from the year-ago reported number.
Solid demand for the company’s AED Rentals is likely to have supported the performance of the First Aid and Safety Services segment. Also, strong customer retention levels and an improved sales mix are likely to have boded well for the segment. The consensus mark for the segment’s revenues is pegged at $378 million, which implies a 13.2% increase from the year-ago reported figure.
Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted Cintas’ top line in the to-be-reported quarter. While the Paris Uniform Services buyout has strengthened CTAS’ market presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has enhanced its footprint in the U.S. central Midwest region.
However, the escalating selling, general and administrative (SG&A) expenses pose a threat to CTAS’ bottom line. An increase in employee-partner-related expenses is expected to have pushed up the SG&A expenses, which is likely to have impacted the company’s margins in the fiscal first quarter.
Given Cintas’ extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt CTAS’ overseas business in the quarter.
Cintas Corporation Price and EPS Surprise
Earnings Whispers
Our proven model predicts an earnings beat for CTAS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: CTAS has an Earnings ESP of +3.60% as the Most Accurate Estimate is pegged at $1.40 per share, higher than the Zacks Consensus Estimate of $1.35. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: CTAS currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Some Companies
In the third quarter of fiscal 2026 (ended June 2026), Spectrum Brands Holdings, Inc. SPB reported adjusted earnings from continuing operations of $2.79 per share, increasing 125% from $1.24 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.49.
Net sales increased 7.7% year over year to $753.3 million and surpassed the Zacks Consensus Estimate of $732 million.
Interparfums, Inc. IPAR posted quarterly earnings of 95 cents per share in the second quarter of 2026, which decreased 4% from 99 cents reported in the prior-year period. The metric missed the Zacks Consensus Estimate of $1.04 per share.
Consolidated net sales rose 2% to $341 million from $333.9 million in the year-ago quarter. Organic sales rose 1%. Excluding headwinds related to the war in the Middle East, second-quarter organic sales increased 4%.
lululemon athletica inc. LULU reported adjusted EPS of $2.06 in the second quarter of fiscal 2026 (ended July 2026), which declined 33.5% year over year but surpassed the Zacks Consensus Estimate of $1.79 by 15.1%.
The company’s revenues declined 4% from the year-ago period to $2.42 billion and 5% on a constant-dollar basis. Revenues missed the Zacks Consensus Estimate of $2.47 billion by 2.1%.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Cintas Gears Up to Report Q1 Earnings: Here's What to Expect

NIKE Inc. NKE is reshaping its marketplace strategy to create a healthier balance between broad consumer reach and stronger full-price profitability. The company is rebuilding wholesale relationships while simultaneously upgrading its direct-to-consumer presence, with a sharper focus on premium brand presentation across digital and physical channels. In fiscal 2026, NIKE refreshed more than 15,000 spaces across wholesale doors globally and elevated more than 150 company-owned stores with sport-led experiences. At the same time, it has been reducing promotional intensity on NIKE Digital and closing stores that no longer fit its long-term marketplace strategy.
Wholesale is becoming an increasingly important part of this integrated approach. Fiscal 2026 wholesale revenues grew 4%, led by double-digit growth in North America, while the company continues to deepen relationships with key retail partners and selectively expand distribution. In North America, fourth-quarter wholesale revenues rose 10%, while NIKE and retail sales at Foot Locker turned positive together for the first time in four years. Importantly, management indicated that the improvement reflected not only sales growth but also lower discounts, cancellations, returns and sales-related reserves, suggesting that NIKE is prioritizing healthier economics alongside wider marketplace exposure.
The profitability side of the strategy hinges on tighter inventory management and a greater proportion of full-price sales. NIKE has been reducing promotions, tightening buys and moderating future sell-in where consumer demand remains soft, particularly in Sportswear. In EMEA, off-price digital sales fell more than 50%, contributing to a 15-percentage-point improvement in full-price realization, while Greater China is also showing better full-price realization after aggressive promotional reductions. Management expects these actions, together with supply-chain efficiencies, to support margin expansion over time. However, the approach may constrain near-term revenues as NIKE deliberately trades some volume for cleaner inventories, stronger pricing and a more premium marketplace.
How Are ADDYY and LULU Managing Marketplace Growth?
adidas AG ADDYY and lululemon athletica inc. LULU are NKE’s key competitors in the global market.
ADDYY is pursuing a balanced marketplace strategy that combines strong direct-to-consumer momentum with disciplined wholesale distribution. In the first half of 2026, DTC revenues advanced 23% on a currency-neutral basis, supported by a 26% increase in e-commerce and 21% growth in own retail, while wholesale revenues rose 7%. At the same time, adidas maintained a conservative wholesale sell-in approach, particularly in Europe, to protect key franchises and sustain full-price realization in a promotional environment. This discipline, coupled with healthy product sell-through and a favorable business mix, is helping the company broaden consumer reach without sacrificing pricing quality or margin potential.
LULU is taking a more measured approach to marketplace growth as it works to strengthen full-price sales and preserve its premium brand positioning. lululemon continues to expand its store network and enhance digital and in-store experiences, ending the second quarter of fiscal 2026 with 825 company-operated stores. However, softer demand, particularly in the Americas, has increased the importance of disciplined inventory and promotional management. Management has identified improving full-price sales, especially in North America, as a key priority, while simultaneously investing in product innovation, marketing and international expansion. This approach could support healthier long-term margins, though weaker comparable sales suggest that balancing broader reach with profitability remains an ongoing challenge.
NKE’s Price Performance, Valuation & Estimates
Shares of NIKE have lost 32.6% in the past three months compared with the industry’s decline of 28.2%.
From a valuation standpoint, NKE trades at a forward 12-month price-to-earnings ratio of 19.34X compared with the industry’s average of 16.96X.
The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year increase of 6.7%, while that for fiscal 2027 indicates growth of 28.6%. The company’s EPS estimates for fiscal 2026 and 2027 have been stable in the past seven days.
NIKE stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NIKE's Marketplace Strategy: Balancing Reach and Profitability?

lululemon athletica inc. LULU reported second-quarter fiscal 2026 results that reflected a contrast between tariff-related earnings support and continued weakness in underlying demand trends. While tariff refunds helped lift reported profitability, revenue declines, weaker comparable sales and reduced guidance highlighted ongoing operating challenges.
The company’s latest results have shifted investor focus toward whether temporary margin benefits can offset weaker traffic, inconsistent product performance and pressure across key markets. LULU currently carries a Zacks Rank #5 (Strong Sell), with a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of C.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LULU Earnings Benefit From Tariff Refunds
lululemon’s second-quarter results received support from tariff refunds. The company recognized $134.5 million of IEEPA tariff refunds and $4.1 million of associated interest, which increased diluted earnings per share by $0.86.
The benefit improved reported profitability but does not fully represent the underlying cost environment. Second-quarter gross margin increased 200 basis points year over year to 60.5%, primarily due to the tariff refund benefit. Excluding the refund, product margin remained pressured by tariffs, markdowns and fixed-cost deleverage.
Operating income declined 13% year over year to $453.7 million, while operating margin decreased to 18.8%. The company also noted that tariffs, excluding the refund benefit, negatively affected gross margin during the quarter.
The impact of tariff refunds highlights the difference between reported earnings performance and underlying operating trends, which remain tied to demand recovery, pricing and cost management.
lululemon athletica inc. Price, Consensus and EPS Surprise
lululemon athletica inc. price-consensus-eps-surprise-chart | lululemon athletica inc. Quote
LULU Revenue Trends Show Regional Weakness
Revenue trends reflected uneven performance across regions. Second-quarter revenue declined 4% year over year to $2.4 billion, while comparable sales declined 9% and 10% on a constant-dollar basis.
The Americas remained the largest pressure point. Revenue in the region declined 8%, while comparable sales decreased 12%. The United States also reported an 8% revenue decline, while Canada revenue declined 11% on a reported basis.
International markets provided some support, although growth moderated. China Mainland revenue increased 4% on a reported basis but declined 2% on a constant-dollar basis, while Rest of World revenue increased 5% on a reported basis and 6% in constant currency.
The competitive environment adds pressure as global athletic and lifestyle apparel brands continue to invest in product innovation and consumer engagement. NIKE Inc. NKE competes across athletic footwear and apparel categories through its global brand platform, product launches and direct-to-consumer strategy. Ralph Lauren Corporation RL also operates in the broader premium apparel market, with its lifestyle positioning creating overlap in select consumer segments where brand identity and product differentiation influence purchasing decisions.
Management cited weaker traffic, softer product launch responses and brand sentiment pressures as factors affecting performance. In China Mainland, the company said negative commentary in media and social channels affected traffic and sales momentum.
LULU Guidance Highlights a Difficult Second Half
Management lowered its fiscal 2026 outlook as current trends pointed to a slower recovery. The company now expects full-year revenue of $10.35 billion to $10.50 billion, representing a decline of 5% to 7%, with earnings per share projected at $9.48 to $9.73.
For the third quarter of fiscal 2026, lululemon expects revenue of $2.29 billion to $2.32 billion, representing a decline of 10% to 11%. Earnings per share are expected at 93 cents to 98 cents compared with $2.59 in the prior-year quarter.
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The revised outlook reflects continued pressure across key operating areas. Management noted that the second-half outlook assumes a slower trend in North America and relatively consistent international performance compared with recent results.
The company also expects full-year gross margin to decline approximately 80 basis points, with higher markdowns and fixed-cost deleverage offsetting benefits from tariff mitigation efforts.
lululemon Adjusts Costs and Product Strategy
lululemon is responding to weaker demand through changes in product development, inventory management and expense controls. Management’s action plan focuses on product creation, product activation and enterprise efficiency to improve full-price sales trends over time.
The company is increasing marketing investments while also tightening expenses across the organization. Initiatives include supply chain efficiencies, procurement savings, technology investments and tighter control of discretionary spending.
Product strategy remains a key part of the recovery effort. Management highlighted stronger performance from newer away-from-body women’s bottoms, including Groove Wide-Leg, Align Foldover Jogger, Breezily and updated Dance Studio Pant. However, leggings sales declined approximately 20% in the second quarter, reflecting changing consumer preferences.
lululemon is also improving inventory responsiveness by chasing approximately 20% more volume this year compared with last year, allowing the company to adjust faster to customer demand.
LULU Ratings Add Perspective After Earnings
LULU’s Zacks Rank and Zacks Style Scores provide additional context following the earnings release. Zacks Style Scores are designed as complementary indicators that evaluate value, growth, momentum and combined style characteristics alongside the Zacks Rank.
The stock’s Value Score of B reflects its lower valuation metrics, while the Growth Score of B highlights longer-term growth characteristics. The Momentum Score of F reflects weaker recent price trends, and the VGM Score of C combines these factors into a broader style measure.
The latest earnings report highlights the difference between temporary earnings support and underlying business momentum. Tariff refunds provided near-term assistance, but investors continue to monitor revenue trends, product acceptance and management’s recovery initiatives as lululemon works through a challenging operating environment.
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LULU Q2 Earnings Show Tariff Refunds but Demand Remains Under Pressure

lululemon athletica inc. LULU is trading at lower valuation levels as investors assess whether its long-term growth opportunities can offset weaker near-term operating trends. The stock currently carries a Zacks Rank #5 (Strong Sell), with a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of C. While valuation has become more attractive after the stock’s decline, investors are weighing slowing demand, lower earnings expectations and increased competition in the global athletic apparel market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LULU Balances Valuation and Competitive Pressure
LULU shares have declined as sales trends weakened across key markets. The stock trades at 10.5X forward 12-month earnings, below the Zacks sub-industry average of 14.4X, the sector average of 15.5X and the S&P 500 index average of 19.8X. The lower multiple reflects concerns around slower growth, margin pressure and uncertainty around the timing of a recovery.
The company operates in a highly competitive athletic apparel market where global brands continue to invest in product innovation, digital engagement and direct-to-consumer channels. NIKE Inc. NKE, with its broad athletic footwear and apparel portfolio, competes across many of the same consumer categories through its global brand presence, product launches and athlete-driven marketing. adidas AG ADDYY, meanwhile, remains a major global sportswear competitor with strength in lifestyle and performance categories, creating additional pressure on brands seeking consumer attention and market share.
Against this backdrop, lululemon’s second-quarter fiscal 2026 results highlighted the challenges facing the company. Revenue declined 4% year over year to $2.4 billion, while comparable sales decreased 9% and 10% on a constant-dollar basis. The Americas remained the largest area of weakness, with revenue down 8% and comparable sales down 12%.
lululemon athletica inc. Price, Consensus and EPS Surprise
lululemon athletica inc. price-consensus-eps-surprise-chart | lululemon athletica inc. Quote
lululemon Builds Recovery Through Product Innovation
lululemon is attempting to improve product relevance through faster inventory decisions, updated core franchises and a broader assortment strategy. Management’s recovery plan focuses on product creation, product activation and enterprise efficiency, with the goal of improving full-price sales trends.
The company said it is chasing approximately 20% more volume this year compared with last year, allowing it to respond faster to customer demand. Product performance, however, remains uneven. Management highlighted stronger demand for newer away-from-body women’s bottoms, including Groove Wide-Leg, Align Foldover Jogger, Breezily and updated Dance Studio Pant. At the same time, leggings sales declined approximately 20% in the second quarter as consumer preferences shifted toward looser silhouettes.
Nike and adidas have also emphasized product innovation as a way to maintain consumer engagement, particularly as athletic apparel demand becomes increasingly influenced by lifestyle trends, performance features and brand identity. For lululemon, strengthening its product pipeline remains important as it works to defend its core categories while expanding beyond traditional yoga-inspired apparel.
LULU Maintains Financial Flexibility Amid Slower Demand
lululemon’s balance sheet provides resources to support investments during the current slowdown. The company ended the second quarter of fiscal 2026 with $1.4 billion in cash and cash equivalents and $593.7 million of available capacity under its revolving credit facility. Inventory totaled $1.7 billion, down 1% year over year, while inventory units declined 7%.
Cash generation has remained supportive. The company generated $589.3 million in operating cash flow during the first two quarters of fiscal 2026 compared with $209.7 million in the prior-year period. lululemon also repurchased 2.7 million shares for $330 million during the quarter.
The company continues to invest in stores, digital capabilities and brand-building initiatives. As of Aug. 2, 2026, lululemon operated 825 company-operated stores globally, expanding its retail footprint despite softer demand trends.
lululemon’s Earnings Outlook Remains Uncertain
Management lowered its fiscal 2026 outlook as demand trends weakened. The company now expects revenue of $10.35 billion to $10.50 billion, representing a decline of 5% to 7%, while earnings per share are projected at $9.48 to $9.73.
For the third quarter of fiscal 2026, lululemon expects revenue of $2.29 billion to $2.32 billion, representing a decline of 10% to 11%. Earnings per share are expected at 93 cents to 98 cents compared with $2.59 in the prior-year quarter.
Profitability remains under pressure from weaker sales leverage, higher marketing investments and markdown activity. Second-quarter operating income declined 13% to $453.7 million, while operating margin decreased to 18.8%. The quarter benefited from $134.5 million in tariff refunds, which increased gross margin by 560 basis points and contributed $0.86 per share after tax.
LULU Signals Need Broader Context
LULU’s Zacks Rank and Zacks Style Scores provide additional context alongside valuation and operating trends. Zacks Style Scores evaluate characteristics such as value, growth, momentum and combined style factors as complementary indicators to the Zacks Rank.
The stock’s Value Score of B reflects relatively lower valuation metrics, while its Growth Score of B reflects longer-term growth characteristics. The Momentum Score of F indicates weaker recent price momentum, and the VGM Score of C combines these factors into a broader style measure.
Investors evaluating LULU are balancing a lower valuation against slowing sales, competitive pressures and uncertainty around the recovery timeline. Product innovation, international expansion and financial flexibility remain important factors, while execution against the company’s strategy will determine whether operating trends improve over time.
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Free: See Our Top Stock And 4 Runners Up
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NIKE, Inc. (NKE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

lululemon athletica inc.

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