Only one Wall Street analyst still rates Lululemon Athletica Inc. as a buy after the upscale yogawear company cut its annual forecast amid slumping sales in North America.
BTIG LLC analyst Janine Stichter downgraded the firm to a neutral rating from a buy on Friday following Lululemon’s first-quarter earnings report, pointing to decelerating sales that “suggests more work ahead.” That leaves CFRA’s Zachary Warring as the sole bull among 32 analysts covering the stock — the fewest buy recommendations for the stock since Lululemon went public in 2007.
Stichter’s downgrade is the latest in a string of cuts by analysts over the last two and a half years as the retailer struggled with slower sales, tariff headwinds and a proxy battle with the brand’s founder Chip Wilson, which ended in May.
More than 80% of analysts had buy-equivalent ratings on Lululemon in late 2023, as the stock climbed to a record high. Since then, the stock shed nearly 80% of its value.
Lululemon shares have already fallen by more than 40% so far this year, matching 2025 declines, as the company struggles to turn performance around and investors balked at the appointment of Heidi O’Neill as chief executive officer.
BNP Paribas analyst Laurent Vasilescu also downgraded the stock following its first-quarter earnings report, slashing his price target to a Street-low $88 from $170 and moving his rating to underperform from neutral. Vasilescu said recent product launches are not working and the firm’s China segment is seeing a meaningful slowdown in sales.
For UBS Securities LLC analyst Jay Sole, Friday’s rout, which dragged the stock to its lowest level since 2018, doesn’t represent a buying opportunity. Sole argued that shares may continue to be under pressure as profit estimates for the firm continue to fall this year.
Written by: Stephanie Hughes — With assistance from Peyton Forte and Janet Freund @Bloomberg
The post “Wall Street Sours on Lululemon Shares After Sales Outlook Cut” first appeared on Bloomberg