Lulu’s Fashion Lounge downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Lulu’s Fashion Lounge to Neutral from Buy with a price target of $2.40, down from $3.75. The analyst cites the company’s weaker than anticipated Q2 pre-announcement and withdrawn guidance. Based on a choppy macro backdrop, Goldman Sachs now has less conviction in the outlook for revenue acceleration for the company into the second half of the year, and the market share gains at Lulu’s Fashion Lounge will be harder-fought given ongoing consumer wallet share shift away from apparel.