Wells Fargo Lowers Lululemon (LULU) PT to $225, Cites US, China Concerns

Lululemon Athletica Inc. (NASDAQ:LULU) is one of the most undervalued Canadian stocks to buy now. On August 4, Wells Fargo analyst Ike Boruchow lowered the firm’s price target on Lululemon to $225 from $270, while maintaining an Equal Weight rating on the shares. The firm believes that Lululemon remains in a tough spot. Wells Fargo mainly pointed to 3 key concerns: the lack of US comparable sales visibility, China growth trajectory, and H2 2025 margin headwinds.

The company’s net revenue increased by 7% year-over-year in Q1 2025 to $2.4 billion. Diluted EPS were $2.60, which was a slight increase from $2.54 in Q1 2024. Performance varied across regions. Americas’ net revenue in particular increased by 3%, while comparable sales decreased by 2%. In contrast, international net revenue surged by 19%, with comparable sales rising by 6%. Overall, company-wide comparable sales increased by 1%.

The company expanded its physical presence by adding 3 net new stores, which brought the total number of stores to 770. For Q2  2025, the company projects net revenue to be between $2.535 and $2.560 billion, which is a growth of 7% to 8%. Diluted EPS is expected to be in the range of $2.85 to $2.90.

Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the US, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.