Jefferies Cuts Lululemon Athletica Inc. (LULU) Price Target Even as Wall Street Expects Sales Growth

Core Viewpoint - Lululemon Athletica Inc. is facing challenges similar to those experienced by Under Armour, leading to a price target cut by Jefferies from $150 to $120 while maintaining an 'Underperform' rating [1][2]. Company Overview - Lululemon Athletica Inc. specializes in manufacturing and selling athletic apparel, footwear, and accessories, particularly known for premium-quality yoga, running, and training wear [4]. Market Position and Performance - Despite the challenges, Lululemon maintains high sales per square foot and margins compared to mall averages and peers [3]. - Wall Street consensus indicates that Lululemon is well-positioned to achieve sales growth in 2026 [3]. Competitive Challenges - The company is experiencing a decline in market share and is struggling with fashion shifts and strategic missteps, mirroring issues faced by Under Armour between 2015 and 2025 [2].