What Changed For Lululemon Stock, And What Did Not

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Shares of Lululemon Athletica (LULU) rose 7.8% on Thursday, October 22, 2026, while the S&P 500 fell 1.2%. The jump came without an announcement from the company, following a year in which the stock lost a large part of its value. So did anything change at Lululemon to justify the move?

Lululemon's Multiple Is Far Below The S&P 500's

Even after the rise, Lululemon stock trades at 8.3 times its earnings over the last twelve months, compared with 23.0 times for the S&P 500. That low multiple comes as management expects earnings per share to fall this year.

One strong day leaves most of the past year's loss in place. The shares lost 42.6% over the year to October 22, while the S&P 500 returned 15.1%. Peer Nike rose 2.1% on October 22 itself, a much smaller move than Lululemon's.

Sales And Margins Kept Falling At Lululemon

Lululemon's revenue fell 4.3% in the quarter ended August 2, 2026, against the same quarter a year earlier. On the September 3 call, management said the shortfall against its own expectations came mostly from Mainland China, where revenue still grew 4%. Revenue in North America fell 8%, slightly better than management had guided. Management also said negative commentary in the media and on social channels hurt traffic, and that sales of leggings fell about 20% in that quarter.

Profit narrowed as well. Lululemon's operating margin over the last twelve months was 17.8%, down from 22.9% a year earlier. The latest twelve months also include a one-time lift from tariff refunds of $134.5 million, which added 560 basis points to the most recent quarter's operating margin and about 1.2 points to the twelve-month figure. Management's guidance assumes no further refunds. None of these business figures moved on October 22, when only the share price did.

Lululemon Still Expects Lower Sales In 2026

On the September 3 call, management guided third-quarter revenue to between $2.29 billion and $2.32 billion, a decline of 10% to 11% from a year earlier. Management also lowered its full-year outlook, and now expects revenue of $10.35 billion to $10.5 billion, down 5% to 7% from 2025. It expects earnings per share of $9.48 to $9.73 for 2026, against $13.26 in 2025.

That full-year forecast of falling sales stands exactly where it was before the shares jumped. Lululemon is expected to report again in December 2026, and revenue against the same quarter a year earlier is the number to watch.

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