There is a lack of near-term catalysts for Lululemon Athletica Inc.'s (NASDAQ:LULU) reacceleration, given that its product enhancements have been pushed into Spring of 2026, according to BTIG analyst Janine Stichter.
The Lululemon Athletica Analyst: Stichter maintained a Buy rating and price target of $303.
The Lululemon Athletica Thesis: Although the company had reported a beat for the second quarter, its revenues were under pressure due to disappointing sales in the Americas, Stichter said in the note.
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Sales in the region decelerated sequentially to 1% growth in constant currency terms, from 4% growth in the first quarter. At the same time, China’s revenues contracted toward the lower end of management’s internal plan, he added.
Management lowered its 2025 earnings guidance to $12.77-$12.97 per share, from its prior projection of $14.58-$14.78 per share, mainly due to pressure on margins and tariff headwinds, rather than a decline in revenues, the analyst stated.
Lululemon Athletica indicated that its revenues would decline by low single digits in the third quarter, he further commented.
Stichter wrote, however, that the stock's multiples "are near troughs," while the company remains "one of the most consistent growth stories in retail."
LULU Price Action: Shares of Lululemon Athletica had risen by 1.56% to $175.86 at the time of publication on Wednesday.
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