Lululemon Athletica (LULU) shares declined on August 25. UBS lowered its price target for the stock from $124 to $120 while maintaining a Neutral rating.
Analysts cite weakening sales trends in the United States and China as the primary driver for the adjustment. UBS expects the company to lower its full-year earnings guidance for the second time this year.
The bank projects a potential guidance reduction of approximately $1.25 per share. This cut would bring the estimated annual range down to $9.70-$9.90 per share.
These concerns precede Lululemon’s second-quarter earnings report. The company is scheduled to release its results on September 3.