11:15 AM EDT, 03/19/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $53 to $217, based on 17x our FY 27 EPS estimate and below the company's three-year average forward P/E multiple of 23.5x, reflecting our view of decelerating growth and a transition year. We lower our FY 27 EPS estimate by $2.25 to $12.75 and initiate our FY 28 EPS estimate at $15.00. We expect significant margin compression in the first half of FY 27 as the company repositions inventory to improve full price sell-through toward the back half of the year. We remain positive on shares but lower our opinion as the transition period is taking longer than expected. LULU posted normalized FQ4 EPS of $5.01 vs. $6.14 in the year prior, $0.23 above consensus estimates on revenues of $3.64B vs. $3.61B and $64M above estimates. The company experienced significant margin compression in the quarter and a decline in comparable store sales in its Americas segment. By region in FQ4, Americas revenue declined 4% Y/Y while International revenue increased 17%.