Wells Fargo Reduces PT on lululemon athletica inc. (LULU) to $205 With ‘Equal Weight’ Rating; Cites Tariff Situation

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Wells Fargo Reduces PT on lululemon athletica inc. (LULU) to $205 With ‘Equal Weight’ Rating; Cites Tariff Situation

A crowd of sports fans watching a live match, dressed in the colors of the owned sports properties.

On August 19, 2025, Wells Fargo reduced its price target for lululemon athletica inc. (NASDAQ:LULU) to $205 from $225, while keeping an Equal Weight rating in light of expected tariff issues. Analyst Ike Boruchow identified risks associated with the abolition of the de minimis exception, accelerated by an executive order issued on July 30 and is set to take effect on August 29.

The exception now permits lululemon athletica inc. (NASDAQ:LULU) to ship U.S. orders duty-free through its Canadian distribution centers, which Wells Fargo believes account for 50-60% of U.S. e-commerce sales. With tariffs rising above 30%, the firm forecasts a $0.90-$1.10 EPS headwind, putting greater pressure on margins than peers such as Tapestry. The policy change is a short-term setback for Lululemon’s U.S. expansion strategy.

lululemon athletica inc. (NASDAQ:LULU) is a global designer, distributor, and retailer of athletic clothes, footwear, and accessories, with a significant presence in North America and growing into new international markets.

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