Lululemon initiated with a Hold at Needham

Needham initiated coverage of Lululemon (LULU) with a Hold rating and no price target Lululemon is “a story in flux,” with slowing trends domestically causing it to be down about 40% year-to-date, the analyst tells investors. There are reasons to be believers for the long run, but the firm believes the competitive landscape in the U.S. is becoming more challenging, while the macro environment in China has also become more difficult, leaving it sidelined for the time being.