Street View: Lululemon's product problems spill across key markets

lululemon athletica

04/09/2026 13:19

** Shares of Lululemon Athletica LULU.O slump ~20% to $96.96 premarket
** The athletic wear maker cut its full-year forecasts again on Thursday as demand weakened in North America and China, its two largest markets
** Focus now shifts to incoming CEO Heidi O'Neill to revive growth
** Median PT of 35 brokerages covering stock is $110
PRODUCT STUMBLES, GROWTH ENGINES SPUTTER
** Jefferies ("hold", PT: $115) says brand momentum is fading fast, with market share losses mounting and an expanded store base weighing on margins
** Oppenheimer ("perform") says merchandising and marketing missteps, rather than just macro weakness, are driving the company's worsening performance and investors should wait for CEO O'Neill's strategy
** Piper Sandler ("neutral", PT: $80) says weak traffic and underwhelming product launches continue to hurt demand, while China's slowdown and an elevated fixed cost base could keep pressure on profits
** J.P. Morgan ("neutral", PT: $95) says co's problems have spread across both North America and China, with management acknowledging brand issues, inconsistent product performance and weakening demand in core categories such as leggings

 (Reporting by Shania S Thomas in Bengaluru)
 ((shanias.thomas@thomsonreuters.com;))