Lululemon stock faces sell rating due to declining valuation and U.S. sales weakness

Lululemon Athletica stock has been downgraded to a sell due to deteriorating valuation and fundamentals, with further price declines anticipated. The company's stock multiple has fallen to approximately 11 times forward earnings, but historical lows may not prevent further drops amid ongoing margin and revenue challenges. Persistent weakness in U.S. sales and increasing reliance on China for international growth raise concerns about Lululemon's brand positioning and long-term sustainability.