Shares of Lululemon Athletica (LULU) fell more than 4% Wednesday, sliding a day ahead of the company's second-quarter earnings report, as a number of analysts lowered their price targets🍸 and said they expect the apparel maker to cut its internal projections for the yea♔r.

Analysts expect Lululemon to report a 9% bump in revenue to $2.41 billion compared with $2.21 billion a year ago when it posts earnings after the bell Thursday. 澳洲幸运5官方开奖结果体彩网:Net income is projected to rise nearly 8% to $368.52 million from $341.6 million in the second quarter of 2023.

Analysts Expect Lowe💦red Outlook as Sales, Discretionary Spending Slow

澳洲幸运5官方开奖结果体彩网:Last month, JPMorgan analysts lowered their price target for Lululemon stock to $338 from $457 citing concerns that a pause in sales of the company's new "Breezethrough" leggings to address negative customer feedback could affect other planned product 👍releases and sales over the second half of the year.

The price target shift and broader concerns about 澳洲幸运5官方开奖结果体彩网:lower discretionary spending sent the stock to its lowest point since May 2020.

In the week leading up to Lululemon's earnings on Thursday, several other analysts lowered their price targets, including Wedbush Securities, which cut to $324 from $400; Raymond James, which cut to $350 from $400; and UBS, which cut to $315 from $385.

Wedbush analysts said Wednesday that Lululemon's potential lowering of its outlook in Thursday's earnings report could prove to be a "clearing event," allowing investors to refocus on the company's "compelling growth opportunities" and strong financials once the year's sales expectations are reset.

'Unfavorable' Sales Trends at Similar Companies

Raymond James analysts said Tuesday that the pausing of the Breezethrough products "puts more pressure" on other new products from Lululemon to outperform sales expectations in the second half. The analysts also noted "unfavorable" sales trends among companies like Ralph Lauren (RL) and Tapestry (TPR) that also target the higher-income 澳洲幸运5官方开奖结果体彩网:customers who make up much of Lululemon's customer base.

UBS analysts wrote last week that their conversations with investors indicate that Lululemon's second- and third-quarter sales trends "look weak" in the U.S., while some believe there is "a good chance to buy an exceptional brand on a major pullback," as shares have 澳洲幸运5官方开奖结果体彩网:lost roughly half their value since the 澳洲幸运5官方开奖结果体彩网:start of 2024.