US Edition
Lululemon shares plunge as earnings guidance falls well short of estimates
Lululemon projects a $240 million gross profit loss in 2025 due to tariff increases and the end of the US de minimis exemption affecting imports, amid reduced consumer spending.
- On Thursday, Lululemon Athletica slashed its annual revenue and profit forecasts, now expecting full-year revenue of $10.85 billion to $11 billion and earnings per share of $12.77 to $12.97.
- Tariff pressures tied to the Trump administration trade policy and the removal of the de minimis exemption on Aug. 29 will reduce full-year profits by about $240 million, amid weakening US holiday sales, PwC survey shows.
- In the second quarter ended August 3, revenue rose 7% to $2.53 billion with earnings per share of $3.10, comparable sales increased 1%, inventories grew 21% to $1.7 billion, and 14 new company-operated stores opened.
- Investors sold off Lululemon shares after the guidance cut, with shares falling about 14% after the closing bell and trading at $180.25 in after-hours, following lowered third-quarter revenue and earnings forecasts.
- Management plans modest price hikes, cost cuts and vendor negotiations to blunt tariff impacts while Jefferies analysts warned guidance cuts will worsen through the fiscal year.
25 Articles
25 Articles
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Lululemon is feeling the squeeze, and its CEO says the brand's gotten predictable
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Lululemon shares tumble as weak demand, tariffs spark profit warning: ‘Lost its innovation edge’
Lululemon Athletica slashed its annual revenue and profit forecasts on Thursday, signaling a slowdown in demand going into the crucial holiday season as consumers cut down spending, alongside tariff pressures.
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