Jefferies says Lululemon momentum is fading amid margin pressure
Jefferies analysts wrote that Lululemon’s second-quarter results indicate momentum is fading. The note cites higher costs from the prior CEO’s push for more and bigger stores, weighing on margins.
Lululemon's second-quarter results show the brand's momentum is fading fast, Jefferies analysts write.
Decisions by the group's previous chief executive to open more and bigger stores have pushed its costs higher, in turn weighing on margins. "Incoming CEO [Heidi] O'Neill has a mountain to climb,"…