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Lululemon’s Slide Deepens as Jefferies Cuts Price Target to $120

Investors are weighing soft U.S. sales versus faster growth overseas.

Overview

  • - The stock is down about 66% from its peak, with the latest leg lower following a Jefferies Underperform rating and a target cut to $120.
  • - North American demand was soft in the latest quarter, with U.S. sales flat year over year for the period ended Aug. 3.
  • - Competition has intensified from premium rivals like Alo Yoga and Vuori and lower-priced sellers including Amazon, Costco, Fabletics, and Gymshark.
  • - Management plans to lift new styles to 35% of the assortment next year from 23% after acknowledging a need for faster product refresh.
  • - International growth remains a bright spot, highlighted by reported 24% constant-currency gains in China and new European efforts such as a Milan flagship.