1332 ET - Lululemon looks particularly at risk of heightened margin pressures given its already-elevated margins and growing inventories, Jefferies analysts say in a note. The company posted a sharp 21% inventory increase in 2Q, well above its 7% sales growth, the analysts say. That wide spread indicates slower product turnover and a growing need for markdowns to clear excess stock, they say. With inventories expected to remain elevated, sales under pressure, and promotional activity increasing, risk to Lululemon's margin and earnings is likely to persist through the remainder of the year, they say. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

September 15, 2025 13:32 ET (17:32 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.