11:50 AM EDT, 03/28/2025 (MT Newswires) -- Lululemon Athletica's ( LULU ) customers are responding well to new product launches and North American sales may improve once store traffic stabilizes, BofA Securities said Friday in a note.

Recent launches including Glow Up, Daydrift and BeCalm spurred positive feedback, and the Daydrift women's lifestyle trousers line is being targeted as a new core franchise, BofA said.

On Thursday, lululemon issued a fiscal Q1 outlook that trailed market estimates amid cautious consumer spending after Q4 results surpassed expectations.

BofA cut its fiscal 2025 earnings estimate by 2% amid margin pressures resulting from tariffs, foreign exchange fluctuations and higher expenses.

BofA reduced its price objective on lululemon stock to $400 from $480 and reiterated its buy rating. Several other analysts cut their price targets, and Raymond James downgraded the company to market perform from outperform.

Lululemon shares fell 14% in recent Friday trading.

Price: 293.01, Change: -48.53, Percent Change: -14.21