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Lululemon remains a buy as growth in China and margin recovery promise potential stock rerating.

Analyst Insights
20 Apr 2026
Seeking Alpha
View Source
Bullish
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Despite recent underperformance, lululemon's stock is rated a buy due to attractive risk-reward. The Americas business shows signs of stabilizing, while international markets, especially China, continue strong growth and increase revenue share. Margins are expected to bottom out soon with management focusing on full-price sales, inventory control, and efficiency improvements through automation and AI. Lower consensus expectations set a low bar, positioning lululemon for a potential positive stock rerating if these improvements materialize.

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