Analyst reduces EPS forecasts for Lululemon as U.S. sales adjustment requires further progress.

LULU · Lululemon Athletica Inc

The AI's read

Guggenheim's EPS downgrades, Q2 sales misses and lowered guidance point to an ongoing U.S. sales reset and near-term revenue and earnings pressure for Lululemon, even after a tariff-related gross-margin boost. Inventory improvement and an underlying margin beat are partial offsets but do not outweigh the sales/guidance weakness.