Lululemon's China Cooldown And US Struggles Weigh On Outlook
1. Lululemon's U.S. growth outlook has softened due to fabric innovation changes. 2. JP Morgan downgraded LULU from Overweight to Neutral, cutting price forecast to $224. 3. U.S. revenue growth forecast decreased to +1.2%, down from +1.7% last quarter. 4. Increased markdowns and fixed cost challenges may constrain future margins. 5. International market growth potential exists despite slower China expansion.