Lululemon removed from Conviction Buy list at Goldman
Octavio Jones

Goldman Sachs tempered its bullishness on Lululemon Athletica (NASDAQ:LULU) after a disappointing earnings result on Thursday evening.

The bankâs analysts cited a miss on gross margins and inventory growth as factors impacting their view of the stock. Additionally, the companyâs Q4 EPS guide came up short of expectations. 

As such, the bank downgraded the stock from Conviction Buy to Buy. 

To be sure, the Buy rating retains bullishness on the stock and especially holiday sales trends. The analysts indicated that the âbroad-based momentum across geographies, channels, and product categoriesâ and optimistic Black Friday sales support continued bullishness on the name.

Shares of the Canadian apparel retailer fell 6.28% in premarket trading.
Read the earnings call transcript.