A Look at Lululemon (LULU) Valuation After Recent Share Price Gains and One-Year Slide

Lululemon athletica (LULU) has seen its stock make modest gains over the past week, up nearly 3%. Investors are watching closely given the stock's longer-term performance, which has lagged with a roughly 12% slide over the past 3 months.

See our latest analysis for lululemon athletica.

Lululemon athletica’s share price has recently ticked higher; however, the momentum fades in the bigger picture. The 1-year total shareholder return of negative 46.5% underscores continued challenges after a tough stretch.

If you’re interested in what other companies are gaining ground, consider a fresh search and check out fast growing stocks with high insider ownership.

But with shares down steeply over the past year and now trading below analyst price targets, is this an undervalued opportunity for savvy investors? Or has the market already factored in everything Lululemon’s future holds?

Most Popular Narrative: 12.4% Undervalued

Lululemon athletica’s most widely followed narrative values the company at $194.36 per share, a significant premium to its last close of $170.35. The gap points to attractive upside based on the scenario outlined below.

The company is implementing a significant reset in its product approach, increasing the share of new styles in its assortment from 23% to 35% by Spring 2026, and investing in faster, more agile design and supply chain processes. These actions are expected to revitalize core categories, drive higher conversion, and support a reacceleration in U.S. and global revenue growth.

Read the complete narrative.

Curious how this bold estimate stacks up? The narrative’s fair value hinges on the speed and success of twice-revamped product lines, global growth, and a future profit multiple that could shift industry standards. Want to uncover which powerful financial drivers the market might be missing? Explore the narrative’s blueprint to see what really moves the needle.

Result: Fair Value of $194.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, recent declines in U.S. sales and tariff headwinds could challenge the company's turnaround and put future earnings growth at risk.

Find out about the key risks to this lululemon athletica narrative.

Build Your Own lululemon athletica Narrative

If you have a different take or want to dig deeper into the numbers yourself, you can build your own perspective in just a few minutes. Do it your way.

A great starting point for your lululemon athletica research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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