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LULU
LONGINSIDER BUYINSIDER SELLLULULEMON ATHLETICA INC
Funds
3
Score
4.50
vs SPY
-30.6%
Stock return (since Q-end)
-14.3%
SPY return (since Q-end)
+16.3%
Current price
$131.18
News Summary
NegativeLululemon reported Q4 results slightly above consensus but issued FY2026 guidance below expectations, with North America revenue expected to decline 1-3% and operating margin compressing ~250bps, driven by tariff headwinds ($220M net impact), margin pressure from discounting, and inventory normalization. New CEO Heidi O'Neill from Nike starts September 2026, while founder Chip Wilson's proxy threat was partially resolved through a cooperation agreement adding board members.
Red flags
- •FY2026 EPS guidance of $12.10-$12.30 below consensus estimate of $12.58 (~3.8% miss)
- •North America revenue projected to decline 1-3% in FY2026 amid U.S. consumer softness
- •Gross margin fell 550bps YoY in Q4 to 54.9%; operating margin expected to decline ~250bps in FY2026
- •Net tariff impact of $220M in FY2026 ($380M gross, partially offset by $160M in mitigation efforts)
- •CEO departure and leadership transition (Calvin McDonald exited Jan 31, 2026; new CEO not starting until Sept 8, 2026)
- •Company pulling back on promotions to protect margins, creating near-term sales headwind during transition
- •Founder proxy battle requiring board cooperation agreement, signaling governance tensions
- •Analyst downgrade: Piper Sandler lowered price target to $130 citing U.S. consumer weakness on May 22, 2026
Funds Buying (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Viking Global | Andreas Halvorsen | 981K | +981K | $150.1B | — | NEW |
| Point72 | Steve Cohen | 599K | +599K | $91.7B | — | NEW |
| Soros Fund Management | Soros Family Office | 2K | +2K | $375M | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Insider Activity
| Name | Title | Type | Shares | Price | Value | Filed |
|---|---|---|---|---|---|---|
| NEUBURGER NICOLE | Chief Brand Officer | SELL | 622 | $161.00 | $0.10M | 2026-04-08 |
| MAESTRINI ANDRE | Pres, CCO & Interim Co-CEO | BUY | 3K | $151.02 | $0.49M | 2026-04-01 |