Lululemon stock (NASDAQ:LULU) is heading into a pivotal moment. With Q1 2025 earnings set to drop on June 5, investors are holding their breath to see if the premium athleticwear giant can maintain its recent upward momentum despite looming economic headwinds.

Tariffs, inflation, and cautious consumers are pressuring the retail sector. Yet Lululemon has outperformed peers thanks to global expansion and strong product appeal. The question now: Can Lululemon stock keep climbing?

Lululemon Stock Performance: A Look Back

Over the past 12 months, Lululemon stock has delivered a 9.8% gain, and momentum has picked up recently with a 21% surge in the past month alone. This performance reflects growing investor confidence in the brand’s strategic direction, including expansion in international markets and continued innovation in product categories.

The company ended Q4 2024 with 767 stores worldwide, after adding 18 net new stores and optimizing 16 others. For fiscal 2025, it plans to grow retail space by 10%, targeting 40 to 45 new stores, with a strong focus on China and other international markets.

Q4 2024 Results Set the Bar High

In its last earnings report on March 27, Lululemon outperformed Wall Street expectations:

• Revenue surged 12.7% year over year to $3.61 billion

• Net income jumped 11.8% to $748.4 million

• EPS rose 16.1% to $6.14, beating forecasts of $5.85

• Gross margin improved to 60.4%

International markets were the standout, with a 38% increase in revenue, validating Lululemon’s push beyond North America.

The company closed 2024 in a strong financial position, with $2 billion in cash and $393.9 million in credit availability, giving it flexibility to continue expanding and investing in new initiatives.

What to Expect in Q1 2025

Lululemon is forecasting:

• Q1 revenue between $2.335 billion and $2.355 billion (6–7% growth)

• EPS between $2.53 and $2.58

• Full-year 2025 revenue of $11.15 billion to $11.3 billion

• EPS guidance of $14.95 to $15.15

Analysts are forecasting Q1 EPS of $2.59, a modest 1.97% year-over-year increase, while the full-year consensus sits at $14.65—slightly below company guidance, suggesting room for upside surprise.

Lululemon Stock Analyst Ratings: Mixed but Positive

Citigroup recently raised its price target on Lululemon stock from $275 to $325, maintaining a “Neutral” stance. The firm sees the potential for an earnings beat, driven by stronger-than-expected comparable sales in both the Americas and China.

Morgan Stanley is more bullish, assigning a price target of $346 (down from a previous estimate), and holding an “Overweight” rating.

Overall, Lululemon stock enjoys a “Moderate Buy” consensus:

• 15 analysts: Strong Buy

• 2 analysts: Moderate Buy

• 11 analysts: Hold

• 1 analyst: Moderate Sell

• 2 analysts: Strong Sell

The average price target is $353.20, implying 4.7% upside, while the most optimistic forecast pegs the stock at $500, suggesting a potential 48% rally from current levels.

Key Takeaways for Lululemon Stock Investors

Lululemon stock is approaching a critical earnings event, with many signs pointing toward continued strength. While broader market challenges such as tariffs and inflation may weigh on retail stocks, Lululemon’s resilient global brand, strong financials, and growth plans offer a compelling case for long-term investors.

As June 5 approaches, all eyes will be on LULU’s earnings. A positive surprise could extend its rally, while a miss may test investor confidence. For now, analysts are cautiously optimistic—and bullish investors may want to mark their calendars.

Featured Image: Unsplash @ Marco Tjokro

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