Lululemon shares tumble 20% as yogawear firm warns tariffs will crimp profit
Lululemon Athletica's
shares
fell 21% in premarket trading 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 Align yoga pants sell for $128 apiece on its website, will raise prices "modestly" for a "small portion of the assortment" and ramp up discounts for the rest of the year, company executives said.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Buy Brass Idols - Handmade Brass Statues for Home & Gifting
Luxeartisanship
Buy Now
Undo
Lululemon has struggled to retain shoppers, despite its efforts to introduce new 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."
Live Events
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.
"My sense is that in the U.S., consumers remain cautious right now, and they are being very intentional about their buying decisions," CEO Calvin McDonald said on a post-earnings call.
The company's stock, which is down about 14% this year, was trading at $261.90 before the bell on Friday. The news dragged Nike's shares down 1.4%.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
33 minutes ago
- Time of India
Mkt eyes turnround in affordable home sales after repo rate cut
Kolkata: Property developers in Kolkata anticipate increased sales of affordable housing units, priced around Rs 50 lakh, following the cumulative 1% reduction in repo rate since Feb. Kolkata's affordable housing sector, traditionally robust in this cost-conscious market, experienced notable variations in recent years due to increasing interest rates and economic constraints. "We expect the affordable home market to revive following the RBI's rate cut, which should lead to a 1% reduction in home loan rates since Feb," said NK Realtors president (brand, consulting & sales) Biplab Kumar. Between 2021 and 2023, RBI's policy changes elevated home loan rates from 6.5% to 9%, resulting in 25%-30% higher EMIs and 15%-20% price increases by developers. Consequently, properties under Rs 50 lakh declined from 63% market share in 2019 to 47% in 2023. The sector showed recovery signs in early 2024, with Q1 registering 12% year-on-year growth in sub-Rs 50 lakh sales. The recent repo rate cut is anticipated to enhance affordability and stimulate demand, with developers suggesting possible price dip. "Home buyers will also witness a steady improvement in affordability. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Keep Your Home Efficient with This Plug-In elecTrick - Save upto 80% on Power Bill Learn More Undo While each cut, including the recent 50 bps, may seem small individually, together they significantly lower borrowing costs and lighten EMI burdens. A Rs 45-lakh home loan at 9% for 20 years sees major benefits from a 100 bps rate cut so far, with total interest reducing by Rs 6.84 lakh (from Rs 52.17 lakh to Rs 45.33 lakh). In a 20-year tenure, the EMI will be down by Rs 2,848 a month," Kumar said. Knight Frank India's national director (research) Vivek Rathi believes these changes will strengthen buyers' purchasing capacity in Kolkata's price-sensitive market, particularly benefiting first-time homeowners, seeking properties below Rs 50 lakh, which represented 41% of Q1 2025 residential sales. CREDAI leadership, including Kolkata president Siddharth Pansari and Bengal president Sushil Mohta, noted the rate reduction's positive impact on developer borrowing costs. Mohta highlighted that CRR reduction would assist in expediting delayed affordable housing projects. He also felt the rate cut would enable developers to pass on the benefits to homebuyers, supporting demand across all segments, not just affordable housing, but also mid and premium categories, as well as commercial real estate. Anarock Group's chairman Anuj Puri suggested that improved bank liquidity and reduced developer credit costs would expedite project completion and inventory absorption in Kolkata. Developers Sanjay Jain of Siddha Group, Rishi Jain of Jain Group and Sahil Saharia of Shristi Infrastructure welcomed the RBI's decision as beneficial for affordable housing buyers. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Time of India
33 minutes ago
- Time of India
Derlakatte Govt PU college converted to women's college
Mangaluru: The Govt PU College in Derlakatte, which started three years ago, was converted into an all-women college after it saw a dip in male student admissions. The college has started admitting female students to arts and commerce courses. However, the second year will continue with male students this academic year. According to officials from the department, the decision was made after the college witnessed poor admissions of male students. There was also a demand from locals for an all-female college. With this change, the district now has a total of four all-girls PU govt colleges. The three other colleges are situated in Balmatta, Carstreet in Mangaluru, and one in Puttur. Rajeshwari, DDPU, Dakshina Kannada, said that based on the request of locals and the college development committee, a proposal was submitted to the department. "A week ago, a team, including me, visited the college campus to check facilities and approved the proposal to convert the college into an all-women institution from this academic year. The college is currently functioning in the high school building, and there is a plan to have its own,'' she said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get Affordable Health Coverage Today Search7 Learn More Undo The college, which started in 2022, receives students from nearby villages such as Pavoor, Harekala, Manjanady, Konaje, Kinya, Belma, and Thokkottu. A year ago, permission was granted to start new govt PU college at Newpadpu, which was demanded by Harekala Hajabba. Satyaprema K, principal of the college, said that currently, the college has about 50 students for arts and commerce courses. Admission are in progress. "We have plans to introduce science in the coming years," she said, adding that from this year, the department granted permission to enrol only female students, making it the first women's govt PU college in Ullal taluk. Sources from the department added that due to the start of the PU college in Newpadpu last year, the expected number of boys did not enrol in the Derlakatte college. Last year, out of 91 students in the arts and commerce streams in the I PU and II PU, only 41 were boys. "With four government PU colleges in Mudipu, Montepadavu, Derlakatte, and Newpadpu, and the low number of boys enrolled in Derlakatte, the college development committee decided to reserve this college for only girls and submitted a request to the MLA, who is also the president of the college," a source added. Currently, the college has a principal, two permanent teachers, two teachers on deputation, and guest lecturers, with five classrooms and a staff room. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Time of India
an hour ago
- Time of India
Capricorn Daily Horoscope Today, June 07, 2025: Finish what you've started
Today reminds you how strong you truly are. You have been carrying more than people realize, but still, you move with discipline and grace. This is not survival—it is a kind of power born from deep inner stability. It is asking you to recognise how much you've already done. Let today be a moment to feel proud quietly. Capricorn Love Horoscope Today In love, you may feel the need to show up strong for someone else—but remember, real love is not based on carrying others' weight all the time. If you're in a relationship, create emotional balance by expressing your needs too. If single, you may attract someone who sees your calm strength. Do not hide your softness to appear powerful. The right person will admire your balance. Love today grows through equal partnership, not emotional sacrifice. Capricorn Career Horoscope Today Work brings responsibility, but not pressure. You are in a position where others trust you, and today that trust will reflect back through support. A senior or colleague may acknowledge your efforts. Use your resilience to finish what you've started, but avoid taking on extra duties unless necessary. The work you do today should feed your peace, not just your status. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo If thinking of a career change, trust that your experience gives you more options than you believe. Capricorn Money Horoscope Today Financially, things are manageable but not ideal for sudden changes. Your slow and steady planning brings better results now than quick investments. Avoid the pressure to compare your financial life with others. You have built stability through patience, and this is rare. Continue saving in small ways. If someone seeks your help financially, give only what doesn't disturb your balance. Keep track of all transactions. Money is flowing, but today it values your control over your courage. Capricorn Health Horoscope Today Your body needs care, especially in the back, legs, or joints. This is your body's way of reminding you to slow down. Emotional tiredness can also appear as muscle stiffness or dryness in the skin. Avoid cold foods and late nights. Drink warm water and follow a basic meal plan. If you can take even ten minutes for mindful rest, your system will thank you. Remember, health is not about doing everything—it's about knowing when to pause. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
