Lulu’s Fashion Lounge downgraded to Neutral from Buy at BTIG

BTIG downgraded Lulu’s Fashion Lounge to Neutral from Buy without a price target. The company’s Q3 missed expectations across both top and bottom lines, and the weakness is extending into Q4, where sales are projected down 20%, similar to Q3, despite easier compares, the analyst tells investors in a research note. The firm says Lulu’s is facing the added layer of execution missteps on product, namely an overly conservative buying strategy that has resulted in a lack of newness in the assortment. It senses this takes several quarters to correct, with the soft macro backdrop “posing another headwind.” BTIG cites a lack a catalyst for a near-term inflection in trends and diminished visibility for the downgrade.