Lululemon shares fell $4.87, or 1.54 percent after a Wall Street analyst downgraded the stock to “underperform” on Jan. 24 and slashed its target price to $290, below the company’s closing price at $311.21. Bernstein analyst Aneesha Sherman suggested the company’s shares have a “reset coming” due to numerous factors ranging from easing pent-up demand and more cautious North American consumers to new product categories that are too small to offset the brand’s softer core business. She expects the group to confirm a slower growth trajectory when it issues FY23 guidance, likely in late March when Q4 and FY22 results are reported.

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