Why Lululemon Stock Fell to Its Lowest Level Since 2020 on Thursday

Lululemon Athletica (LULU) shares tumbled to their lowest level since nan outpouring of 2020 arsenic analysts raised concerns astir nan manner diversion deterioration maker’s financial capacity successful a slowing unit environment.

The company's shares fell 9.1% to decorativeness Thursday's convention astatine $247.32. The banal was nan biggest decliner connected nan Nasdaq Composite.

JP Morgan lowered its value target from $457 to $338, and dropped nan institution from its Analyst Focus List. It kept its Overweight rating.

The analysts particularly pointed to Lululemon’s determination to region income of its recently-released Breezethrough collection, arsenic guidance cited “an intent to make creation adjustments basal based connected impermanent feedback” to present an improved merchandise experience.

The analysts said nan news has compounded caller in-stock and colour palette execution concerns, which person delayed “the reacceleration catalyst apt to 4Q/Holiday pinch our caller fieldwork pointing to nary signs of near-term betterment done 2Q.”

JP Morgan lowered its estimate for fiscal twelvemonth 2024 net per stock (EPS) to $13.90, which it said reflected below-consensus second-half gross maturation of 9%, and fiscal twelvemonth 2025 EPS to $14.97 connected different 9% gross increase.

Adding to nan downward unit was connection Citi downgraded nan banal and besides lowered nan value target.

Shares of Lululemon Athletica person mislaid astir half their worth since nan commencement of 2024.

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