The downgrade comes as Lululemon’s shares fell 19.8 percent on Friday, June 6.
Morgan Stanley downgraded Lululemon to “Equal-weight” from “Overweight” on waning confidence in a recovery in the company’s core U.S. market. The lead analyst for the financial services corporation, Alex Straton, also cut her price target from $346 to $280.
The downgrade comes as Lululemon’s shares fell 19.8 percent on Friday, June 6, after the retailer trimmed its earnings guidance for the year due to the impact of tariffs while projecting second-quarter guidance below Wall Street targets. The earnings pressure, to a lesser degree, reflects a more cautious consumer, with Lululemon slightly increasing its expectations for year-end markdowns.
