From Yahoo Finance: 2025-03-29 10:33:00

Lululemon faced a troubling end to 2024 as customer behavior shifted, leading to flat sales in the Americas. CEO Calvin McDonald cited weakening consumer demand due to economic uncertainty and inflation concerns, resulting in decreased foot traffic in stores.

Despite launching new products, Lululemon is seeing slower traffic industry-wide in the U.S. as consumers cut back on high-end activewear purchases. The secondhand apparel market in the U.S. grew by 14% in 2024, as more consumers opt for affordable options amidst rising costs.

Tariffs imposed by President Trump have led to increased consumer interest in secondhand clothing. Companies facing higher import costs pass them on to consumers through price hikes. Lululemon plans to focus on product innovation to navigate the challenging macro environment in the U.S. and meet consumer expectations.

Read more: Lululemon CEO sounds alarm on unexpected customer behavior