Lululemon downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc downgraded Lululemon (LULU) to Sector Weight from Overweight without a price target The company’s fiscal Q2 earnings report was mixed, with revenue falling short of expectations and U.S. growth turning negative for the first time in several years, the analyst tells investors in a research note. The firm says this drove a fiscal 2025 earnings guidance cut and “several actions to course correct the business over the coming quarters.” KeyBanc sees value in the stock longer term, but believes a lack of positive catalysts over the coming quarters, execution concerns in the U.S., and a “highly competitive” athleticwear marketplace “ultimately outweigh it,” warranting a downgrade.