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Another Lululemon bull jumps ship. Here’s why the troubles are far from over.

1. Analyst cuts Lululemon rating to neutral, citing high markdown levels. 2. Stock price target reduced from $225 to $195 due to low growth confidence. 3. Discounted merchandise up 77% YoY, indicating sales uncertainty. 4. Lululemon's stock is down 54.7% in 2025 despite recent recovery. 5. Only eight of 34 analysts remain bullish on Lululemon stock.

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FAQ

Why Bearish?

The substantial markdowns and lowered growth expectations suggest consumer weakness, impacting SPY indirectly.

How important is it?

The retail sector is significant for SPY; issues in Lululemon may signal broader market challenges.

Why Short Term?

The immediate effects of Lululemon's struggles may affect market sentiment and investor confidence in retail, influencing SPY.

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