Should You Buy Lululemon Stock Before Sept. 3?
2026-08-26 12:37
•Rick Munarriz •The Motley Fool
•••• ••• Axe Cap view
Lululemon’s US Struggles: Watch, Don’t Jump In
Lululemon’s sales and profits are set to shrink again, but new leadership might spark a recovery.
Lululemon’s shares have halved from their peak, reflecting the tough reality of shrinking sales expected over the next quarter. The incoming CEO from Nike offers a sliver of hope, given her experience in a similar market, but this sector remains under pressure—Dick’s Sporting Goods’ 31% drop after guidance cuts isn’t just an outlier. For South African investors, this means the rand’s weakness against the dollar (USD/ZAR) makes US-listed names like Lululemon more expensive, so timing matters. Meanwhile, local retail giants like Woolworths and Shoprite continue serving a tougher but more stable domestic market. If you’re considering US athleisure plays, be cautious—expect near-term pain as the sector resets but keep an eye on leadership changes as potential catalysts. The risk is that the consumer slowdown drags longer than expected or the new CEO struggles to reverse trends quickly. this is just our opinion and not financial advice
I would wait before buying Lululemon, especially given recent earnings weakness and currency risks. Focus on domestic retailers for now, trimming any US exposure unless risk appetite is high.
- LULU
- USD/ZAR
- Woolworths
- US consumer spending slows further
- rand volatility adds currency risk
6/10
Lululemon faces challenging earnings next week with expected 2-3% revenue decline and 42-43% net income plunge. However, the stock's 50% decline already reflects pessimism, and incoming CEO Heidi O'Neill from Nike could catalyze a market sentiment shift starting Sept. 8. Despite near-term headwinds in athletic retail, leadership change may provide a reset opportunity.
Our take is based on reporting first published by The Motley Fool.