Analysts Trim Lululemon Price Targets Amid Weaker Sales and Rising Competition

Lululemon Athletica faces mounting headwinds as Wall Street analysts slash price targets ahead of its Q2 earnings report. Needham's Tom Nikic cut his target to $238, citing margin pressure and online discounting, while BTIG's Janine Stichter reduced hers to $375, pointing to U.S. growth challenges. Both maintain Buy ratings, arguing the stock's 14x forward P/E—its lowest since 2008—already reflects much of the risk.

The athleticwear retailer grapples with a trifecta of pressures: softening domestic demand, intensified competition, and promotional activity eroding profitability. Yet bulls highlight Lululemon's robust brand equity and cash reserves as potential catalysts for a second-half rebound. The company reports September 4 amid a sector-wide reckoning for premium apparel brands.