Consumers have been cautious about how they spend, affecting the results of retail names across the sector. With Lululemon's (LULU) earnings report approaching, Bernstein analyst Aneesha Sherman joins Morning Brief to discuss her expectations for the athletic apparel brand.

Sherman observes that Lululemon is "going through some growing pains." The primary target audience of mature women aged 35-55 is "pulling back on spending." Additionally, a lack of "newness and innovation" at the brand isn't driving customer purchases. Sherman emphasizes, "What this brand needs to do now is find new pockets of growth," suggesting expansion to younger women, men, and other demographics.

"They're in this growing pains phase, and I think what we'll look for in the earnings report is: are they able to pivot?" Sherman says.

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This post was written by Angel Smith