---
title: "Lululemon Athletica Is 'Over-Investing In Innovation,' Analyst Cuts Price Target"
description: "Lululemon Athletica faces risks due to product execution issues and growth in sale sections, according to Piper Sandler analyst Anna Andreeva. She maintained a Neutral rating and cut the price target "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/250634102.md"
published_at: "2025-07-29T15:26:09.000Z"
---

# Lululemon Athletica Is 'Over-Investing In Innovation,' Analyst Cuts Price Target

> Lululemon Athletica faces risks due to product execution issues and growth in sale sections, according to Piper Sandler analyst Anna Andreeva. She maintained a Neutral rating and cut the price target from $270 to $200. The company has significantly increased its innovation efforts, but this has led to more products ending up on clearance, resulting in higher discounting. Lululemon's shares rose by 0.64% to $217.97 at the time of publication.

There could be further risk to **Lululemon Athletica Inc's** LULU estimates, given its continued product execution issues and sale section growth, according to Piper Sandler.

**The Lululemon Athletica Analyst:** Analyst Anna Andreeva maintained a Neutral rating, while reducing the price target from $270 to $200.

**The Lululemon Athletica** **Thesis:** The company has 57 instances of innovation and newness in color year to date, which is almost three times the levels last year, Andreeva said in the note.

**Check out other analyst stock ratings**.

The number of SKU’s on sale from the We Made Too Much tab started to pick up mid-June, the analyst wrote. The last three weeks of July ran in the 1,000+ SKU range, levels now slightly above last Holiday and vs.~600 SKU’s on average last July.

Lululemon offered a 25% discount on as many as 15 full-priced items in June, she added.

This over-investment is evident from new products moving quickly to the clearance racks, which helps explain the higher discounting being offered, Andreeva further stated.

**Price Action:** Shares of Lululemon Athleticahadrisen by 0.64% to $217.97 at the time of publication on Tuesday.

-   **Is Lululemon Headed For Its Nike Moment?**

*Image: Shutterstock*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.