Lululemon’s Elusive Recovery Prompts Seven Analyst Cuts in a Day

Lululemon Athletica Inc. was hit with at least seven analyst downgrades in a single day as analysts say the upscale clothing retailer needs a “strategic pivot.”

Shares hit their lowest level since the onset of the pandemic after the company slashed its outlook for both the third quarter and the full year, hurt by weak demand and a stricter trade regime under the Trump administration. The stock fell as much as 20%, touching the level it last traded in March 2020.

Analysts from Truist Securities, Evercore ISI, Telsey Advisory Group, Bank of America, Oppenheimer, William Blair and Stifel downgraded Lululemon’s ...