Lululemon Stock Skyrockets to $408 in 2025 After Impressive Q3 Earnings Beat
Discover why Lululemon's shares surged following strong Q3 earnings and an upgraded full-year forecast, with analysts highlighting robust growth in the US and China.
Key Insights
- Lululemon’s stock surged significantly after surpassing third-quarter earnings expectations and raising its annual revenue outlook.
- Analysts have increased their price targets, emphasizing growth potential both domestically and internationally, especially in China.
- Experts from Stifel highlight Lululemon’s ability to attract new customers and boost spending per existing customer.
Shares of Lululemon (LULU) soared on Friday after the brand outperformed Q3 earnings forecasts and provided an optimistic full-year revenue estimate, prompting analysts to adopt bullish stances.
Morgan Stanley praised the results and the improved guidance, noting stabilized US market growth alongside accelerating momentum in women’s apparel and Chinese markets. The firm reaffirmed its "overweight" rating and raised the price target to $414.
Lululemon updated its full-year revenue projection to a range between $10.452 billion and $10.487 billion, up from the previous $10.375 billion to $10.475 billion estimate.
Analysts Highlight Lululemon’s Strong Growth Position
Stifel analysts increased their price target from $370 to $438, maintaining a “buy” recommendation. This new target reflects a 7% premium following an 18% spike in shares, which reached an intraday peak of around $408 on Friday.
According to Stifel, Lululemon is uniquely positioned at the crossroads of long-term market trends, with international expansion—especially in China—being an undervalued growth driver. The company is expected to maintain robust growth by expanding its customer base and elevating revenue per customer.
This positive outlook follows CEO Calvin McDonald’s recent acknowledgment of challenges related to product freshness, which impacted conversion rates last quarter.
Despite the recent rally, Lululemon shares have declined over 20% in 2024, trading near $401.52 late Friday.
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