Lululemon Slashes Full-Year Outlook Amid Tariff Headwinds, Weak North America Sales
LULU is trading near its 52-week low of $116.625 (3.3% below the low) on elevated volume (2.3× avg).
Summary
Lululemon slashed its full-year revenue and EPS guidance, citing persistent tariff headwinds and a 3% decline in North American net revenue. While Q1 revenue beat estimates at $2.5 billion, diluted EPS fell significantly to $1.69 from $2.60 year-over-year. This negative outlook, which includes a projected Q2 revenue decline, deepens concerns about the company's core market performance and margin pressure, following its previously reported Q1 net income drop and ongoing proxy contest with founder Chip Wilson. The news is likely to exacerbate pressure on the stock, which is already trading near its 52-week low.
At the time of this announcement, LULU was trading at $112.74 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $116.63 to $339.15. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.