A Seeking Alpha analyst downgraded Lululemon Athletica (LULU) from "Neutral" to "Sell" on October 26, 2026. This downgrade follows two consecutive cuts to the company's financial guidance. Lululemon now projects a revenue decline for fiscal year 2026.
The analyst cited successive reductions in forecasts. Lululemon's updated guidance anticipates a 5% to 7% year-over-year revenue decrease for fiscal 2026. The company also lowered its pro forma earnings per share (EPS) forecast by approximately 13%.
The downgrade reflects a loss of confidence in Lululemon's near-term prospects. Key challenges include accelerating sales declines and eroding brand relevance. This view follows a period of weakening brand momentum and increased competition.