Lululemon earnings growth to turn negative in FY26, says Jefferies

Jefferies analyst Randal Konik noted that while visiting the Garden State Plaza mall, Lululemon store “foot traffic was quiet” and contends that “pricing, product, color, and conversion appear to be a problem.” The firm, which continues to see the U.S. segment turning negative by year-end and staying negative in 2025, forecasts earnings growth will turn negative for the first time in FY26 and it keeps an Underperform rating and $220 price target on Lululemon shares.