Data indicates Lululemon promo activity accelerated in January, says Jefferies

Jefferies analyst Randal Konik said the firm’s analysis of pricing data indicates that Lululemon’s promotional activity accelerated in January and that the firm’s recent store visit indicated rising markdown risk for the outerwear category. The firm, which thinks there is increased downside risk to Lululemon’s Q4 gross margin guidance, reiterates its Underperform rating and $200 price target on the shares.