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Lululemon’s stock faces heavy analyst downgrades amid sliding sales
In Q2, revenue fell year over year and comparable sales dropped 10%, with China mainland sales up just 4% on a decline of 2% in constant currency.
MarketBeat Ratings says lululemon athletica is struggling with Wall Street, pointing to just one Buy rating against 27 Hold or Sell ratings, alongside lowered price targets and reiterated negative views of the stock.
The outlet links the bearish sentiment to operating headwinds including slowing growth in Asia, execution risk around a major leadership transition with a new CEO arriving in September, and weak turnaround visibility.
MarketBeat Ratings also cites results showing Q2 revenue down year over year and comparable sales down 10% over the same period, with China mainland sales rising only 4% year over year. It adds that this implies a 2% decline in constant currency.
The analysis further highlights product weakness and demand issues, including a 20% year over year decline in leggings sales, softer accessories sales, and what it describes as costly PR missteps during the leadership change.