1343 ET - Lululemon is losing the market share battle to Alo Yoga in Miami, according to Jefferies analysts in a note, and it's an ominous sign for LuLulemon's prospects across the rest of the country. The analysts say fashion trends often start on the coast and move inward, and they believe Lululemon's non-core products aren't selling and "newness" isn't resonating with customers. Meanwhile, the analysts say Alo's lifestyle-oriented approach is seeing success, evidenced by the popularity of its tops, bottoms, and socks in Miami, where they say a new Alo location is set to open in the same shopping center as Lululemon. The situation has Jefferies, which has an underperform on the stock, anticipating lower sales and earnings for Lululemon in the U.S. this year. Lululemon is off 1.7% and down 24% in the past 12 months. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
April 15, 2025 13:43 ET (17:43 GMT)
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