Oppenheimer downgrades Lululemon following softer Q2 results, lower guidance

As previously reported, Oppenheimer downgraded Lululemon (LULU) to Perform from Outperform and removed the firm’s price target on shares, formerly $500. Oppenheimer notes the company posted generally softer-than-planned Q2 results and meaningfully lowered guidance for FY25. While the firm is encouraged with now even more aggressive efforts on the part of senior leadership to reinvigorate merchandising, particularly in North America, it is concerned that repositioning plans will take time, and could portend further top- and bottom-line dislocations nearer term. A more challenged macro and sector backdrop is weighing upon internal repositioning plans at Lululemon, Oppenheimer adds.