US EditionLululemon shares tumble 20% as it cuts full-year guidance, citing ‘dynamic macroenvironment’
- Lululemon Athletica Inc. Reported a 2.1% net income decline to $314.6 million for the quarter ended May 4, 2025, while net revenue rose 7.3% to $2.37 billion.
- The company encountered challenges due to tariffs on Asian imports enacted under the Trump administration, ongoing economic uncertainty, and reduced customer visits across the Americas influenced by inflation and cautious spending habits.
- Lululemon intends to implement slight price hikes on a limited selection of its products and anticipates second-quarter net revenue to fall between $2.54 billion and $2.56 billion, with diluted earnings per share projected in the range of $2.85 to $2.90.
- CEO Bjorn Gulden explained that due to the inability to manufacture most items domestically, increased tariffs will lead to higher expenses for their product range in the US market over time, while CFO Meghan Frank stated that planned price adjustments would be limited and moderate.
- Lululemon cut its annual EPS forecast to $14.58–$14.78 and lowered operating margin guidance due to tariffs, indicating a challenging but manageable environment amid cautious U.S. Consumer spending.
59 Articles
59 Articles
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