Lululemon Stock Drops After Analyst Trims Price Targets On Tariff-Linked Lifestyle Brand Risks

Stifle has cut price targets "across the board" by an average of 18% across the analyst's sports and lifestyle brands coverage.
A customer enters a Lululemon store on June 02, 2023 in Corte Madera, California.  (Photo by Justin Sullivan/Getty Images)
A customer enters a Lululemon store on June 02, 2023 in Corte Madera, California. (Photo by Justin Sullivan/Getty Images)
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Yuvraj Malik·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Lululemon Athletica Inc. (LULU) dropped 6.3% on Thursday, after Stifel reportedly cut its price target on the athleisure apparel maker’s stock.

The research firm cut its target to $353 from $424, while maintaining a 'Buy' rating, according to The Fly.

The sentiment among retail traders on Stocktwits strengthened.

Stifle has cut price targets "across the board" by an average of 18% across the analyst's sports and lifestyle brands coverage to reflect the likelihood of tariff implementation and the resulting earnings pressure.

The firm's revised valuations considers a 10% blanket tariff rate, with 60% for goods sourced from China.

Last month, several analysts lowered ratings on Lululemon after the company issued its annual outlook.

The company forecasted fiscal 2025 revenue and earnings below analysts' estimates and called out a business hit from President Donald Trump's tariffs.

It said consumers were spending less due to economic and inflation concerns, resulting in lower U.S. traffic at Lululemon and its peers.

On Stocktwits, retail sentiment rose to 'bullish' from 'neutral', but message volume dropped from a day earlier.

A user said that the trade policy uncertainty is making it hard to place bets.

LULU shares are down 33% year to date.

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