Analyst Pressure Weighs on Lululemon Stock Before Earnings

Core Viewpoint - Lululemon Athletica Inc is facing a decline in stock price ahead of its third-quarter earnings report, with expectations of disappointing results due to shrinking margins and increased competition [1] Group 1: Earnings Expectations - Jeffries has reiterated an "underperform" rating for Lululemon, lowering its price target to $120, citing pricing pressures and competition from Alo Yoga [1] - The stock is currently trading at $180.80, down 4.8% [1] Group 2: Stock Performance - Lululemon's stock has not recovered from a bear gap following its September 5 earnings report, despite a partnership with the NFL and Fanatics [2] - The stock has found support at $160, which is near its five-year low of $159.25 [2] - Year-to-date, Lululemon's equity has decreased by 52.8% [2] Group 3: Historical Performance - The stock has a weak post-earnings history, dropping 18.6%, 19.8%, and 14.2% after its last three earnings reports [4] - Options traders are anticipating a 17.8% price swing, indicating a critical moment for the stock [4] Group 4: Options Market Sentiment - Options traders are exhibiting increased bearish sentiment, with a 10-day put/call volume ratio of 1.12, ranking higher than 88% of readings from the past year [5]