From Yahoo Finance: 2025-06-06 15:00:00

Lululemon stock plummeted over 19% due to profit warnings in a turbulent market. Second-quarter adjusted earnings per share are expected to be $2.85-$2.90, below Wall Street estimates. Full-year EPS outlook was slashed to $14.58-$14.78. Revenue for Q2 is predicted to grow 7%-8%, lower than expected. Shares have fallen over 30% this year. Consumer confidence has waned, impacting sales. Lululemon, among other retailers, has lowered earnings outlooks due to President Trump’s tariffs. 42% of Lululemon’s products are made in Vietnam, impacting by tariffs. CFO Meghan Frank expects a 30% tariff on China and 10% on all countries. The company plans strategic price increases on select items to offset tariffs. Morningstar analyst David Swartz believes Lululemon can raise prices effectively. CFO Frank mentioned efficiency actions in sourcing to combat tariffs. Inventory jumped 23% in Q1. Second quarter guidance includes increased US promotions due to economic concerns.



Read more at Yahoo Finance: Lululemon stock plunges as company’s profit outlook misses forecasts on tariff, consumer worries