1341 ET - Lululemon's merchandising and designs remain the core challenge for the activewear company, Jefferies analysts say in a note. "Our consistent channel checks continue to show one thing: product remains the problem, and it has only gotten worse," the analysts say. The company's assortments have been shifting week to week and lacking a clear point of view, with store floors overrun with patterns, logos and lower-quality fabrics, the analysts say. That marks "a sharp departure from the clean, performance-driven aesthetic that built the LULU brand," they say. Lululemon's efforts to widen its market by moving into everyday apparel have diluted its brand, and pushed out its core premium customer, they add. "These issues are now showing up in the data," they say, with purchase consideration turning negative in March and sliding further in April. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

May 18, 2026 13:42 ET (17:42 GMT)

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