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Lululemon Stock Trades at 2018 Levels Despite Record Revenue: Time to Buy?

Reported by Sam Quirke. Originally Published: 4/15/2026.

Shares of athleisure giant Lululemon Athletica Inc (NASDAQ: LULU) are trading just above $160, up more than 10% from the multi-year lows set in the last week of March. While that bounce is encouraging, it hasn’t changed the bigger picture: the stock remains about 28% below its December highs and nearly 70% below its all-time peak, making it one of the more painful holds in the retail and apparel space over the past couple of years.

For investors who rode that selloff, the pain is understandable. For those on the sidelines, however, the setup looks far more interesting. Let’s take a closer look at why this could be a major buying opportunity.

A Sharp Decline That Might Have Gone Too Far

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Lululemon’s selloff has been driven largely by waning confidence in its growth trajectory, especially in North America. What was once a steady engine of expansion has slowed, raising concerns about market saturation and shifting consumer preferences.

At the same time, the broader narrative around premium consumer brands has become more challenging: investors are less willing to pay up for growth when that growth appears to be slowing. That shift in sentiment has compressed Lululemon’s valuation over the past year, sending shares to new lows even as earnings remained solid. The result is a stock that went from being priced for perfection at the end of 2023 to trading at 2018 levels despite printing record revenues.

Increasing competition in the athleisure space and evolving consumer tastes have also been headwinds. For a brand that once disrupted the market, Lululemon is now experiencing what it’s like to be disrupted.

The Business Is Holding Up Better Than the Stock

What makes the current setup compelling is that the underlying business hasn’t deteriorated to the extent the share price implies. Lululemon has continued to deliver solid results and has consistently topped analyst expectations, including record quarterly revenues reported last month.

Management’s 2026 Action Plan appears to be gaining traction. The company is focusing on reaccelerating North American growth through product innovation, shorter development cycles, and operational improvements designed to win back high-value customers.

Meanwhile, international markets are helping offset North American softness. Growth in China remains robust, and the company’s expansion into India adds another potential long-term growth driver. This geographic diversification reduces reliance on North America and supports a more balanced growth profile. Taken together, these factors suggest the fundamentals are far from broken even if sentiment has soured.

Valuation and Analyst Targets Highlight the Opportunity

The disconnect between price and fundamentals is evident in Lululemon’s valuation. The stock is trading at a price-to-earnings ratio of around 12X—near its lowest level in years and well below the roughly 18X multiple it traded at this time last year. For a company still delivering record revenue, trading back at 2018 levels suggests the stock may be oversold.

Recent analyst updates reinforce that view. JPMorgan Chase and Robert W. Baird are two examples of firms that have maintained Neutral or similar ratings in recent weeks, yet their price targets—$196 and $190, respectively—sit well above LULU’s current price near $160. Based on those Neutral ratings alone, there’s as much as roughly 22% of potential upside from current levels.

When even cautious analysts have price targets that imply meaningful upside, it suggests the market may be overly pessimistic in pricing the stock.

Early Signs of a Bottom, But Risks Remain

The recent bounce off multi-year lows suggests selling pressure may be easing. While it’s still early, this kind of price action can mark the initial stages of a bottom, particularly when supported by improving sentiment and stable fundamentals.

That said, this is not a risk-free opportunity. The stock remains in a downtrend, and it will take more than a short-term rally to reverse that pattern fully. Lululemon must continue to deliver quality quarterly results and demonstrate that its turnaround is gaining traction to restore investor confidence.

If the company can achieve that in the coming months, the stock could move quickly. For investors looking for the potential ground floor of a recovery, this is what it can often look like.