Lululemon (LULU) stock drops after the apparel maker lowers its sales outlook; Wall Street analysts downgrade the stock and cut price targets, citing weakening consumer demand and sector headwinds.
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 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.
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.
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.
Lululemon Athletic cut its annual sales forecast, triggering a wave of analyst downgrades and a steep sell-off. The revised guidance signals slowing consumer demand amid a competitive athleisure market. Wall Street sentiment turned sharply negative, with price targets slashed and bearish options activity surging.
Lululemon cited softer consumer demand in North America, elevated inventory levels, and a need for deeper markdowns, leading to a reduced revenue forecast for the fiscal year.
Analysts from major firms downgraded Lululemon’s stock and cut price targets, reflecting concerns over slowing growth and competitive pressures, which triggered a sell-off of more than 8%.
Lululemon’s warning adds to signs of a pullback in discretionary spending, particularly in premium apparel, and could signal headwinds for other consumer-focused companies as consumers trade down.