TORONTO, June 8 (Reuters) - Analysts trimmed price targets on Lululemon Athletica Inc on Friday, a day after the yogawear maker and retailer warned the pace of its rapid sales growth is likely to slow in the current quarter.
The Vancouver-based company reported 25 percent sales growth from established stores in the quarter to April 29, but said growth in the current quarter would ebb to low double-digits.
“In what was a pretty high-quality quarter we find ourselves nitpicking because we think the stock was priced for perfection going in,” said Macquarie analyst Liz Dunn in a note to clients.
Dunn cut her price target on Lululemon shares to $68 from $75. She said the company’s plan to focus on product innovation is positive, but this means sales are unlikely to beat market expectations in the near term.
BMO Capital Markets analyst John Morris cut his price target to $65 from $75, citing concerns with the outlook.
“The deceleration is likely more than the Street anticipated and highlights our concerns about Lululemon’s ability to maintain such a high level of growth,” he said in a research note.
Analysts at Wedbush lowered their target to $83 from $90.
Shares of Lululemon, which closed nearly 9 percent lower at $63.84 on Thursday, edged down to $63.77 before the bell on Friday. (Reporting By Euan Rocha; Editing by Janet Guttsman)