William Blair analyst Sharon Zackfia has maintained their neutral stance on LULU stock, giving a Hold rating on November 18.
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Sharon Zackfia’s rating is based on several factors influencing Lululemon Athletica’s current market performance. The company is expected to meet its earnings per share guidance, but sales are anticipated to be at the lower end of expectations, with projected revenue growth of 3%, slightly below the guidance range of 3% to 4%.
Additionally, there has been a noticeable decline in the Americas’ performance, with a mid-single-digit drop in constant-dollar comparable sales, which is a deterioration from the previous quarter. Overseas trends are expected to follow a similar pattern, despite some growth in Mainland China and other regions. Furthermore, while markdowns in U.S. stores were limited, there was a significant increase in online markdowns, indicating heightened promotional activity across both women’s and men’s categories.
In another report released on November 18, Goldman Sachs also maintained a Hold rating on the stock with a $180.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LULU in relation to earlier this year.