Why Lululemon Stock Popped Today

By Rich Smith – Dec 18, 2025 at 10:53AM ESTKey PointsLululemon stock beat earnings last week.Activist investor Elliott Management has bought $1 billion in Lululemon stock, and supports a turnaround in the business.Investment bank Jefferies is modestly optimistic about the stock.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: LULULululemon Athletica Inc.Market Cap$24BToday's Changeangle-down(6.62%) $13.76Current Price$221.63Price as of December 18, 2025 at 11:47 AM ETCan Elliott Management turn Lululemon Athletica stock into a winner again?Lululemon Athletica (LULU +6.62%) stock jumped 6.4% through 10:20 a.m. ET Thursday. You can thank Jefferies in part, as the investment banker raised its price target on Lulu to $200 this morning. But that's only part of the story. Image source: Lululemon Athletica. Lululemon Q3 earnings Lulu is coming off a promising earnings report last week, in which the athleisure retailer reported strong growth in international sales and earnings well ahead of analysts' targets. What really gets Jefferies excited about the stock, though, is news that activist investor Elliott Management bought a $1 billion stake in Lulu stock. Elliott is pushing Lulu's board to return to its roots and adopt changes urged by its founder, Chip Wilson, to make the lululemon brand "cool" again. Jefferies notes this will take years to accomplish. While the banker is optimistic enough about the effort to raise its price target on Lulu stock, it's not quite confident enough to actually upgrade its rating on Lulu stock to "buy." In a separate note today, Needham analyst Tom Nikic (who also has a "hold" rating on Lululemon) suggests that the company should hire former Coach and Ralph Lauren CFO Jane Nielsen to turn around Lululemon's business. Advertisement ExpandNASDAQ: LULULululemon Athletica Inc.Today's Change(6.62%) $13.76Current Price$221.63Key Data PointsMarket Cap$24BDay's Range$218.65 - $225.8552wk Range$159.25 - $423.32Volume443KAvg Vol4.4MGross Margin58.35% Is Lululemon stock a buy? Whether or not that happens, Lululemon's already taking steps to boost its growth. Guidance for Q4 was somewhat weak, with the company forecasting a 1% to 3% sales decline and weaker earnings than Wall Street had anticipated. Management announced this morning, though, that it will be doubling down on its strongest growth segment, international, with store openings in six new markets in 2026. With Lulu priced under 15 times trailing earnings, the stock won't require significant growth to justify this price. If the international growth pays off, Lululemon stock just might be a buy.About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolRead NextDec 17, 2025 •By Parkev Tatevosian, CFAIs Lululemon Stock Still an Undervalued Stock?Dec 15, 2025 •By Geoffrey SeilerIs Lululemon Back? What's Driving the Stock's Strong Gains This Month?Dec 13, 2025 •By Timothy GreenLululemon Stock Is a Buy After CEO ExitDec 12, 2025 •By Daniel SparksAfter Getting Crushed Earlier This Year, Lululemon Stock Is Soaring. Time to Buy?Dec 12, 2025 •By Rich SmithWhy Lululemon Stock Popped TodayDec 11, 2025 •By Jeremy BowmanLululemon Shares Rally After Hours as CEO Plans Exit. Does the Market Expect a Strategy Shift?