William Blair analyst Sharon Zackfia downgraded Lululemon (LULU) to Market Perform from Outperform without a price target following the earnings report. The firm cites the uncertainty on the timing of a U.S. sales turnaround, a much greater than expected impact from tariffs given the discontinuation of the de minimis provision, and signs of macro “noise” in China for the downgrade. Blair now projects Lululemon “will lose a year of earnings,” with its new 2026 earnings per share estimate of $14.18 below its incoming 2025 estimate of $14.41. Lululemon is now a 2026 “show-me story” when new product hits in the spring, with little in the way of catalysts in the interim, contends the firm.
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