Lululemon Shares Tumble as Sales Outlook Cut Sparks Analyst Downgrades
Lululemon cut its annual sales outlook, triggering analyst downgrades and a sell-off. The revised guidance reflects weakening consumer demand and inventory challenges, pushing the stock below key support levels. Bearish options activity surges as Wall Street sours on the stock.
- ▼ Lululemon cuts annual sales forecast
- ▼ Multiple Wall Street analyst downgrades
- ▲ Consumer spending could rebound later in the year
- ▲ International growth may exceed expectations, offsetting domestic weakness
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What is the new sales guidance from Lululemon?
Lululemon now projects full-year revenue growth in the range of 5% to 7%, down from the prior outlook of 8% to 10%, reflecting cautious consumer spending.
What are the key price levels for LULU stock after the drop?
The stock broke below $250 support, with next downside targets at $220 and $200. A break below $200 would likely signal a longer-term bearish trend.
How are analysts adjusting their ratings and price targets?
Several analysts downgraded the stock from Buy to Hold or Neutral, with price target cuts ranging from $300 to $220, reflecting a more cautious outlook on near-term growth.