Lululemon (LULU) Faces Scrutiny Over 'Get Low' Collection Amid E-Commerce Sales Pause
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Product Development Investigation: Levi & Korsinsky is investigating Lululemon's product development processes and supply chain management following a pause in e-commerce sales for the 'Get Low' collection, which may undermine investor confidence.
- Intensifying Market Competition: The global athleisure market, valued at approximately $350 billion, presents Lululemon with fierce competition from Nike, Adidas, and emerging direct-to-consumer brands, necessitating enhanced brand differentiation to maintain market share.
- Quality Control Issues: The new collection has faced customer dissatisfaction due to quality control problems, with consumers noting that the leggings become overly revealing during activities like squatting and bending, potentially leading to a decline in sales.
- Historical Lessons: Lululemon previously withdrew its 'Breezethrough' leggings in 2024 due to quality issues, and this incident could repeat itself, impacting brand reputation and future product launch plans.
Analyst Views on LULU
Wall Street analysts forecast LULU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LULU is 207.12 USD with a low forecast of 146.00 USD and a high forecast of 303.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
1 Buy
21 Hold
0 Sell
Hold
Current: 194.660
Low
146.00
Averages
207.12
High
303.00
Current: 194.660
Low
146.00
Averages
207.12
High
303.00
About LULU
lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
