Jefferies expects Lululemon Q2 results to ‘underwhelm’

Jefferies notes that the firm’s checks found that Lululemon (LULU) has “significantly upsized” its footprint at Woodbury Commons outlets, but argues that “outlet fire sales don’t work-they only degrade brands.” The firm, which expects Lululemon Q2 results to “underwhelm,” anticipates “another guidance cut,” and believes earnings “will crash later this year,” recommends that investors keep selling shares and maintains an Underperform rating with a $160 price target