From Yahoo Finance: 2025-06-06 06:41:00

Lululemon Athletica’s shares dropped 21% due to tariff-related costs and weak demand in North America and China. The Canadian company plans modest price hikes and increased discounts to mitigate losses. Stock trading at $264, set to lose $8 billion in market value. Intense competition challenges growth despite new product launches.

Lululemon struggles to retain customers amidst fierce competition in North America and China. Analysts express concern over misalignment in prioritizing product innovation over core customer retention. Sportswear rivals Nike and On also raise prices. Proposed tariffs threaten margins and impact key sourcing hubs in Vietnam, Cambodia, and Sri Lanka.

Lululemon cuts 2025 earnings forecast and faces challenges in domestic business growth. Brokerages lower price targets, with J.P. Morgan reducing the most. Lululemon’s forward price-to-earnings multiple is 21.46, lower than Nike’s 31.37 and Gap’s 9.54. Uncertain economic conditions under President Trump contribute to market volatility.



Read more at Yahoo Finance: Lululemon shares tumble as yogawear firm warns tariffs will crimp profit