Truist Securities downgraded Lululemon Athletica to Sell from Hold and cut its price target to $94 from $115, warning of structural headwinds that could pressure earnings and delay a recovery. The brokerage cited weakening card spending trends, deteriorating brand momentum on social media, rising competition, and leadership transition uncertainty, noting the stock has rebounded more than expected despite a soft first-quarter outlook. Truist lowered its fiscal 2026 and 2027 earnings per share estimates to $10.50 and $10.25, respectively, from $11.25 and $11.75, both below consensus, and reduced its valuation multiple to 9 times from 10 times. Analysts highlighted softer Google Trends and TikTok data, declining card spending, and Reddit discussions pointing to weaker brand perception, along with competitive threats from newer activewear brands and slowing momentum in China. The removal of the U.S. de minimis exemption for certain cross-border shipments was also flagged as an additional structural headwind for profitability.
Lululemon Athletica Inc.Truist downgraded Lululemon to Sell, slashed price target to $94, and cut EPS estimates, citing structural headwinds.
Truist Financial Corp