The high-end athleisure brand is “in the tariffs bullseye” – with the bulk of its manufacturing sourced from countries hit hard by the new reciprocal levies, according to an analyst.
Trump's new tariffs are forcing U.S. apparel and shoe makers to scour the world for new places to manufacture.
Despite LULU's strong Q4 performance, the stock plummeted due to softer-than-expected FY25 guidance and challenging macroeconomic conditions, including harsh reciprocal tariffs. LULU's innovative product launches and strong international market growth, particularly in China, demonstrate the company's resilience and ability to stabilize sales. The valuation remains attractive with a projected FY25 EPS of $14.95, but caution is advised due to broken momentum and potential volatility from external challenges.
2024 was not a good year for apparel specialist Lululemon Athletica (LULU -1.22%) investors, and 2025 is not off to a good start. The stock price fell around 25% in 2024 and is trading down more than 26% to start this year following the company's most recent earnings report and guidance release.
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Lululemon's (LULU) CEO says the company is tackling its “newness” problems. Unfortunately, it has other problems, too.
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Lululemon NASDAQ: LULU shares dropped precipitously following its 2025 guidance because it was weak. However, the guidance calls for growth and weakness, not because of some operational shortcoming but rather the economy at large and general headwind for retailers.
Lululemon Athletica is focusing on new products and community events to draw customers at a time when many are concerned about inflation and the economy.
Major U.S. equities indexes tumbled after Friday's inflation report came in hot, and consumer sentiment weakened significantly.
Shares of Lululemon Athletica (LULU -14.81%) plunged on Friday, falling 14.3% as of 11:45 a.m. ET.
Lululemon Athletica Inc (NASDAQ:LULU) continues to see strong customer interest in new products, but weaker foot traffic has weighed on its outlook, analysts say. The athleticwear company's shares are down more than 14% on Friday following yesterday's earnings release that showcased weak first-quarter guidance, overshadowing its stronger-than-expected fourth-quarter results.