Lululemon Athletica Inc. (NASDAQ: LULU) is an athletic apparel company specializing in premium athletic wear. The company is facing a challenging period, with its stock trading at a seven-year low. This comes as Lululemon contends with slowing revenue growth, shrinking profit margins, and a recent change in leadership.
Lululemon is scheduled to release its quarterly earnings report on June 4, 2026. Wall Street analysts are watching closely, forecasting an earnings per share (EPS) of $1.67. EPS represents the company's profit divided by its number of outstanding shares, indicating profitability on a per-share basis.
The company's revenue is estimated to be approximately $2.43 billion for the quarter. As highlighted by Zacks, this figure would be a 2.6% increase from the same quarter last year. However, this modest growth comes after the Lululemon stock has fallen more than 35% this year.
While revenue shows a slight increase, the projected EPS of $1.67 marks a 35.8% decline year-over-year. This sharp drop in profitability is a key concern for investors. Despite this, Lululemon has a history of beating earnings estimates for over twenty consecutive quarters.
Lululemon maintains a conservative financial position with a debt-to-equity ratio of 0.36, showing it relies less on debt. The company also has a current ratio of 2.26. This indicates Lululemon has more than enough short-term assets to cover its short-term liabilities, suggesting strong financial health.
