The athletic retailer shared a disappointing annual income forecast
Lululemon Athletica Inc (NASDAQ:LULU) inventory was final seen down 14.5% at $409.20, regardless of the attire retailer beating fourth-quarter earnings and income estimates. What’s weighing on the shares as a substitute is a disappointing annual income forecast, amid declining demand for its merchandise.
The safety attracted a number of price-target cuts in response, together with one from Wells Fargo to $425 from $450. The 12-month consensus goal value of $489.45 is a 20.8% premium to present ranges, although, and 20 of the 26 analysts in protection nonetheless price Lululemon Athletica inventory a “purchase” or higher.
LULU is buying and selling at its lowest degree since November, and firmly under the 120-day shifting common. Shares are additionally on monitor for his or her worst single-day share loss since March 2020, whereas seeking to snap a three-day win streak. Up to now this yr, the safety has shed 20.5%.
Choices quantity is already working at 25 instances the intraday common, with 27,000 calls and 35,000 places exchanged thus far as we speak. Hottest is the weekly 3/22 400-strike put, the place positions are being opened. This indicated choices merchants count on extra draw back for LULU by as we speak’s shut.
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