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Lululemon Shares Plunge 20% Amid Tariff Concerns

9/7/2025

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Summary

Story summary

Lululemon athletica shares dropped nearly 20% in pre-market trading following a disappointing Q2 2026 earnings report.
The company anticipates new U.S. tariffs will cost around $240 million this year, affecting profitability.
CFO Meghan Frank noted the removal of the de minimis duty exemption will impact earnings and U.S. e-commerce.
Lululemon lowered Q3 revenue growth guidance to 5-6%, falling short of analyst expectations.
CEO Calvin McDonald highlighted predictable product cycles and increased promotions due to declining U.S. store traffic.
The stock has declined nearly 50% year-to-date, raising concerns about its premium pricing strategy.
Despite these challenges, Lululemon sees growth potential in international markets, especially China.
The company reported $10.9 billion in revenue but faces competition from lower-priced rivals.

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Story summary

Lululemon athletica shares dropped nearly 20% in pre-market trading following a disappointing Q2 2026 earnings report.
The company anticipates new U.S. tariffs will cost around $240 million this year, affecting profitability.
CFO Meghan Frank noted the removal of the de minimis duty exemption will impact earnings and U.S. e-commerce.
Lululemon lowered Q3 revenue growth guidance to 5-6%, falling short of analyst expectations.
CEO Calvin McDonald highlighted predictable product cycles and increased promotions due to declining U.S. store traffic.
The stock has declined nearly 50% year-to-date, raising concerns about its premium pricing strategy.
Despite these challenges, Lululemon sees growth potential in international markets, especially China.
The company reported $10.9 billion in revenue but faces competition from lower-priced rivals.