Skip to content
Options Trading Report

Options Trading Report

Primary Menu
  • Home
  • Business
  • Domestic
  • Economy
  • Money
  • Top News
  • Newsletters
  • Home
  • 2025
  • June
  • Lululemon shares tumble as yogawear firm warns tariffs will crimp profit
  • Business

Lululemon shares tumble as yogawear firm warns tariffs will crimp profit

Editor June 6, 2025
2025-06-06T104114Z_1_LYNXNPEL550HS_RTROPTP_4_LULULEMON-RESULTS-1

By Savyata Mishra

(Reuters) -Lululemon Athletica’s shares fell as much as 21% on Friday, as the maker of high-end leggings warned that tariff-related costs and uneven demand in key markets of North America and China will dent its profits this year.

The Canadian firm, whose popular Align yoga pants sell for up to $128 apiece on its website, will take modest price hikes for a “small portion of the assortment” and ramp up discounts for the rest of the year, company executives said.

The company’s stock, which is down about 14% this year, was trading at about $264 on Friday, on track for its worst day since March 2020. This has set Lululemon up to lose roughly $8 billion in market value, if losses held.

Lululemon has struggled to retain shoppers, despite its efforts to introduce fresh styles of sports bras and athletic jackets, as it faces intense competition from trendier and more affordable brands in North America and mainland China.

“Despite (Americas) decline, management continues to prioritize product newness and China expansion over addressing a pullback from core customers and evident traffic declines,” Jefferies analyst Randal Konik said in a note.

“We believe this misalignment is concerning.”

Lululemon joins sportswear rivals Nike and On in raising prices in the U.S. as erratic trade tactics under President Donald Trump rattle global markets and fuel fears of a recession.

Lululemon trimmed its 2025 earnings forecast and said it expects margins to come under pressure from the proposed tariffs, which will impact products from some of its largest sourcing hubs in Vietnam, Cambodia and Sri Lanka.

The company’s latest results suggest Lululemon might be facing deeper challenges given the slowdown in its domestic business over the past twelve months, UBS analyst Jay Sole said.

At least 12 brokerages cut their price targets on the stock, with J.P. Morgan slashing it the most, to $303 from $389.

Lululemon’s forward price-to-earnings multiple, a common benchmark for valuing stocks, is 21.46, compared to that of 31.37 for Nike and 9.54 for Gap.

(Reporting by Savyata Mishra in Bengaluru; Editing by Shreya Biswas)


About the Author

Editor

Administrator

Author's website Author's posts

Continue Reading

Previous: Broadcom shares drop as revenue forecast fails to impress
Next: Trump can bar AP from some White House events for now, US appeals court says

Related Stories

2025-07-15T153004Z_1_LYNXMPEL6E0PL_RTROPTP_4_FRANCE-TESLA
  • Business

Tesla’s top North American sales executive leaves, WSJ reports

Editor July 15, 2025
2025-07-09T153930Z_2_LYNXMPEL680QD_RTROPTP_4_SAUDI-ARAMCO-POWER-PLANTS
  • Business

Exclusive-Oil giant Saudi Aramco in talks with Commonwealth LNG for offtake agreement, sources say

Editor July 9, 2025
2025-07-07T042911Z_3_LYNXMPEL6601M_RTROPTP_4_USA-TRUMP
  • Business

Trump says alignment with BRICS’ ‘anti-American policies’ to invite additional 10% tariffs

Editor July 7, 2025

Live Market Pulse

The charting technology is provided by TradingView. Learn how to use theTradingView Stock Screener.

Want More Market News?
Add your email address below to get up to date market news and more!
By submitting the form you agree to the Privacy Policy of Options Trading Report and agree to receive our email updates and special offers. As a bonus, you will also get a free subscription to MTA Trade of the Day, Privacy Policy. You will receive special offers and advertisements from Options Trading Report and MTA Trade of the Day and our affiliates. You may unsubscribe at any time.

Search

Recent Posts

  • Crypto week legislation hits snag in US Congress, some stocks fall
  • Trump says US will be fighting China ‘in a very friendly fashion’
  • Tesla’s top North American sales executive leaves, WSJ reports
  • Crypto week legislation hits snag in US Congress, some stocks fall
  • White House National Security Council hit by more departures, sources say

Categories

  • Business
  • Market News
  • Newsletters
  • Options
  • Reflections

You may have missed

  • Newsletters

Crypto week legislation hits snag in US Congress, some stocks fall

Editor July 15, 2025
2025-07-15T201709Z_1_LYNXMPEL6E0XQ_RTROPTP_4_USA-TRUMP

Trump says US will be fighting China ‘in a very friendly fashion’

Editor July 15, 2025
2025-07-15T153004Z_1_LYNXMPEL6E0PL_RTROPTP_4_FRANCE-TESLA
  • Business

Tesla’s top North American sales executive leaves, WSJ reports

Editor July 15, 2025
2025-07-15T203614Z_3_LYNXMPEL6E0X2_RTROPTP_4_USA-CONGRESS-TAX

Crypto week legislation hits snag in US Congress, some stocks fall

Editor July 15, 2025
  • Home
  • Terms of Service
  • Privacy Policy
  • Disclaimer
  • Contact Us
Copyright 2025 © All rights reserved | Options Trading Report | optionstradingreport.com