From Financial Modeling Prep: 2025-03-28 17:56:00

Lululemon Athletica (NASDAQ:LULU) saw its shares plummet by over 14% after issuing a disappointing annual forecast due to economic uncertainty and potential fallout from U.S. tariffs. While Q4 earnings beat estimates at $6.14 EPS and $3.61 billion revenue, the forward guidance fell short of expectations, projecting full-year EPS of $14.95 to $15.15 on revenue between $11.15 billion and $11.3 billion.

The company expects Q1 EPS of $2.53 to $2.58 on revenue of $2.335 billion to $2.355 billion, below analyst forecasts. Softening consumer spending and declining traffic trends in U.S. retail, along with tariff-related headwinds from China and Mexico, are impacting Lululemon’s outlook.

Trump’s tariffs have added to retail sector uncertainty, with Lululemon and Walmart warning of cost pressures and supply chain disruptions. Despite challenges, Lululemon anticipates year-over-year growth, albeit at a slower pace. Analysts note concerns about North American operations but view the guidance as appropriately conservative given the current environment.



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