Lululemon falls; J.P.Morgan cuts to 'neutral'

Shares of Lululemon Athletica LULU.O down 1.8% at $219.20 premarket

J.P.Morgan downgrades yogawear maker's stock to "neutral" from "overweight"; trims PT to $224 from $303

JPM says U.S. growth is slowing as core and seasonal products underperform, with revenue increasingly reliant on limited set of new innovations

Brokerage adds that inventory pressures are rising, prompting deeper markdowns and promotional activity that may weigh on margins more than expected

Last month, LULU cut its profit forecast for the year

JPM estimates total FY26 Americas revenue of $7.961 billion, falling short of co's Investor Day goals by nearly $1 billion

17 of 34 brokerages rate stock "buy" or higher, 14 "hold" and three "sell" or lower; median PT is $290 - data compiled by LSEG

As of last close, LULU down ~41% YTD