Lululemon Q4 Preview: More Downside Ahead? Market Expert Says 'Downtrend Written All Over' Chart

Apparel company Lululemon Athletica (NASDAQ:LULU) could provide more details on a turnaround and a new CEO plan when the company reports fourth-quarter financial results Tuesday after market close. Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch. Lululemon Q4 Earnings Estimates Analysts expect Lululemon to report fourth-quarter revenue of $3.59 billion, down from $3.61 billion in last year's fourth quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in eight of the last 10 quarters overall. Analysts expect the company to report earnings per share of $4.77, down from $6.14 year-over-year. The company has beaten analyst estimates for earnings per share in more than 15 straight quarters. What Experts Are Saying About Lululemon Trends remain tough for Lululemon heading into the earnings print, Needham analyst Tom Nikic said in a new investor note. The analyst maintained a Hold rating on Lululemon with no price target. While fundamentals look tough, the analyst warns against shorting the stock given the potential new CEO announcement that could help boost shares. "There's a chance they name a new CEO, particularly since they're Q4 reporting earlier than normal," Nikic said. "If they name a compelling CEO, shares could react favorably," Nikic said. The analyst said Lululemon's domestic business is facing pressure and the company is showing troubling numbers of items that end up in the "made too much" section of the company's website. "Street number for FY26 seems conservative, but given the challenges it's not unreasonable to think they could take a more conservative tack to start the year, resulting in share-price downside risk to the $145-$150 range," Nikic said. Freedom Capital Markets Chief Market Strategist Jay Woods said investors will be hoping for signs of a turnaround in the company's North American segment. "Lululemon's stock has been punished because the market doubts the North American growth story can continue," Woods said in a weekly newsletter. "Investors hope they can show improving U.S. trends and stabilize margins to help turn things around." Woods said shares are down over 20% year-to-date in 2026 and the technicals show that things could look even worse going forward. "Everything about this has downtrend written all over it. If price fails to hold $150 expect the pain to continue for much longer." Key Items to Watch in Lululemon's Results All eyes could be on a potential CEO announcement or the company's timeline to name a successor. Former CEO Calvin McDonald stepped down on Jan. 31, 2026, and the company covered the role in the short term with two executives serving as interim CEOs. Activist investor Elliott Investment Management took a stake of over $1 billion in Lululemon in December and is pushing to make former Coach and Ralph Lauren executive Jane Nielsen the company's new CEO. Experience in the apparel sector for a new CEO could provide optimism for the struggling company. A double beat in the third quarter provided some optimism that the company could build on with a strong earnings report and a new CEO announcement. International revenue up 33% year-over-year helped offset a 2% decline for Americas segment revenue in the third quarter. Data from Placer.ai shows Lululemon had a 7.2% year-over-year increase in visits in October, before visits declined 3.5% and 8.4% in November and December, respectively. Weak visits data and a rise in inventory on the "made too much" page tracked by Nikic could signal weak revenue for the quarter. Lululemon Stock Price Action Lululemon stock is up 1.3% to $159.76 on Monday versus a 52-week trading range of $156.64 to $348.50. Shares are down 24.2% year-to-date in 2026 and down 51.2% over the last year. Image via Shutterstock