lululemon athletica inc. has been downgraded to a Zacks Rank #5 (Strong Sell) as its near-term earnings outlook deteriorates. The athletic apparel maker is seeing weakening trends in North America, its largest market, with Americas revenue falling 3% year-over-year and comparable sales down 5% in the latest quarter. Gross margin contracted 410 basis points to 54.2%, further pressuring profitability. Analysts have turned bearish, issuing negative earnings estimate revisions that reflect the growth cooldown and margin compression.
Lululemon Athletica Inc.Downgraded to Zacks Rank #5 Strong Sell due to deteriorating earnings outlook, negative estimate revisions, and margin compression.