Lululemon Shares Dip As Needham Downgrades Stock To Hold

Group 1 - Needham downgraded Lululemon Athletica Inc. from Buy to Hold, with shares falling more than 1% in pre-market trading [1] - The last 18 months have been disappointing for Lululemon, and while new product launches are expected to lift U.S. sales in 2025, the competitive environment has proven too challenging [1] - Street estimates for FY26 are considered too high, forecasting a mid-single-digit EPS decline compared to consensus expectations for flat performance [2] Group 2 - Analysts noted that while the company has not harmed its brand, the U.S. market remains difficult, making it prudent to wait for signs of stabilization before turning more positive [2]