Lululemon Athletica Inc. (LULU) is currently ranked #5 (Strong Sell) by Zacks due to declining sales and profitability pressures, particularly in North America. For the latest quarter, revenues in the broader Americas region decreased by 3% year-over-year (YoY), with comparable sales dropping 5% YoY. The company’s gross margin also fell by 410 basis points YoY, now standing at 54.2%.
Analysts have expressed concern about Lululemon’s earnings outlook, noting negative revisions linked to a slowdown in growth. This trend marks a significant shift for the company, which was previously known for robust gains.
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