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Lululemon Athletica Q2 FY2025 Earnings Call Transcript - Lululemon Athletica (NASDAQ:LULU)
Lululemon's gross profit declined by 110 basis points due to higher tariffs and markdowns, with U.S. revenue expected to drop 1-2% while China grows 20-25%, CFO stated.
- Lululemon Athletica, a Vancouver-based clothing retailer, reported second-quarter 2025 net revenue of US$2.53 billion, up seven percent year-over-year.
- The company adjusted its 2025 guidance due to increased tariffs, including the recent removal of the de minimis exemption, and softer US consumer demand.
- Despite a 220 basis point expected gross margin decrease and supply chain headwinds, international business remained strong with 25 percent revenue growth in China.
- CEO Calvin McDonald acknowledged the quarter’s disappointing results but emphasized confidence that the brand will achieve stronger performance moving forward.
- Lululemon intends to maintain its focus on strategic investments and cost reduction measures to address tariff-related challenges, anticipating total revenue for 2025 to fall within a range of approximately $10.85 billion to $11 billion.
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Lululemon CEO 'not satisfied' with Q2 results as profit declines
Lululemon Athletica Inc.’s CEO says he is not happy with the clothing retailer's latest results, as it faces softer consumer demand and tariff headwinds, coupled with the removal of the de minimis exemption for small U.S.-bound shipments.
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Total News Sources18
Leaning Left14Leaning Right0Center2Last UpdatedBias Distribution88% Left
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88% Left
L 88%
12%
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