03:53 PM EDT, 08/30/2024 (MT Newswires) -- Lululemon Athletica ( LULU ) Q2 Americas sales growth was 1% year over year, raising concerns about whether this slowdown is temporary or indicative of a longer-term trend, UBS said in a note Friday.

The company expects to restart historic product innovation by spring 2025, which might keep it rangebound until that time, the investment firm said.

Lululemon reported Q2 earnings of $3.15 a share, which was slightly above consensus estimates, with total revenues growing 7.3% year over year to $2.37 billion, UBS said.

While US sales remain under pressure, Lululemon's international regions, particularly Mainland China, showed strong momentum, and can drive a 32% year-over-year increase in international sales for Q3, it added.

UBS maintained a neutral rating and $315 price target for Lululemon.

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