Lululemon expectations have improved a lot that the upside alternative has evaporated for buyers, in accordance with Citigroup.
Regardless of strong vacation efficiency and “product newness” driving gross sales on the athletic attire retailer, Citi analyst Paul Lejuez downgraded shares of Lululemon to impartial Tuesday.
“We consider expectations at the moment are elevated for a robust fourth quarter and continued momentum into fiscal yr 2018, creating much less room for disappointment” Lejuez wrote in a be aware to shoppers Tuesday. “Though Lululemon is likely one of the extra engaging sq. footage development tales in softlines retail, we consider expectations are excessive and the danger reward is balanced.”
Regardless of the decision, the inventory closed 1.four p.c greater on Tuesday, to $79.69 a share.