A slowdown in the North American sportswear market shows Lululemon Athletica’s stock is overvalued, Jefferies analyst Randal Konik says in a research note. The maker of workout gear’s core consumer faces incremental pressures, and while its market share expansion in China is encouraging, the highly competitive nature of that market could make it more difficult to drive higher market share across the region. That would likely make investors be incrementally more focused on slower growth in the U.S. rather than healthy international results, Konik says. “We believe sales growth rates and store productivity are at peak levels, suggesting financial results could be more volatile from here.” Jefferies sees Lululemon’s top-line trends healthy, but expects a deceleration in the 2H of 2025. Shares fall 2.5% to $364.82.