US EditionYoga pants maker Lululemon says US consumers are cutting back on spending
- On March 27, 2025, Lululemon Athletica Inc. Reported fourth-quarter earnings, revealing net revenue of US$3.61 billion for the quarter ended Feb. 2, up from US$3.21 billion a year earlier, but also issued weaker-than-expected guidance for the coming year.
- Lululemon's lower guidance stems from concerns about a slowing U.S. Economy, inflation, and the impact of U.S. Tariffs on imports from China and Mexico, leading to cautious consumer spending in the U.S., as revealed by polling with Ipsos.
- Despite beating fourth-quarter expectations with earnings per share of $6.14 and revenue of $3.61 billion, the company anticipates first-quarter revenue between $2.33 billion and $2.35 billion and earnings per share from $2.53 to $2.58, falling short of analysts' estimates of $2.39 billion and $2.74, respectively.
- CEO Calvin McDonald stated, "consumers are spending less due to economic and inflation concerns, resulting in lower U.S. Traffic at Lululemon and industry peers," but also highlighted the company's focus on newness and innovation with offerings like Glow Up workout gear and Day Drift casual trousers to attract customers.
- Following the earnings report and weak guidance, multiple analysts, including Dana Telsey of Telsey Advisory Group and Tom Nikic of Needham, lowered their price targets for Lululemon, while still maintaining positive ratings, and B of A Securities analyst Lorraine Hutchinson lowered the price target from $480 to $400.
Insights by Ground AI
Does this summary seem wrong?
36 Articles
36 Articles
All
Left
5
Center
5
Right
2
What's Going On With Lululemon Shares Friday? - Lululemon Athletica (NASDAQ:LULU)
Luluemon Athletica, Inc. (NASDAQ:LULU) shares are trading lower on Friday after the company issued weak guidance in its fourth-quarter earnings report. What To Know: The company expects first-quarter revenue from $2.33 billion to $2.35 billion, versus analysts’ estimate of $2.39 billion. In addition, the company sees earnings per share from $2.53 to $2.58, versus analysts’ estimate of $2.74. For fiscal-year 2025, Luluelemon ...Full story availab…
·New York, United States
Read Full Article
Coverage Details
Total News Sources36
Leaning Left5Leaning Right2Center5Last UpdatedBias Distribution42% Left, 42% Center
Bias Distribution
- 42% of the sources lean Left, 42% of the sources are Center
42% Center
L 42%
C 42%
R 17%
Factuality
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
