Lululemon shares tumble 20% as it cuts full-year guidance, citing ‘dynamic macroenvironment’
- Lululemon reported a 20% share price drop after cutting its annual profit forecast amid a challenging macroeconomic environment and tariffs on imports in 2025.
- The company's difficulties stem from U.S. tariffs on goods sourced mainly from Vietnam and China, causing rising costs and economic uncertainty affecting consumer spending.
- Lululemon's first-quarter net income fell 2.1% to $314.6 million with a 7.3% revenue increase to $2.37 billion, while comparable sales fell 2% in the Americas but rose internationally.
- Finance chief Meghan Frank said the company plans modest price increases on a small part of its products to offset tariffs, while CEO Calvin McDonald highlighted cautious U.S. consumers and agility as key.
- Lululemon anticipates reduced profitability in the latter half of the year, maintains its 2025 revenue projection within a range slightly above $11 billion, and continues to navigate uncertainties stemming from ongoing tariff effects.
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