Lululemon shares tumble as yogawear firm warns tariffs will crimp profit
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, opens new tab 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AFP
an hour ago
- AFP
Posts falsely claim Namibia has announced ban on US gas and oil exploration
'Namibia cancelled contract with US from Mining their OIL & GAS,' reads an X post published on May 30, 2025. With more than 16,000 likes, the post adds: 'They ended the Oil & Gas contract with the US and told the US Government to immediately stop all Mining Operations in Namibia as Namibia ventures into State-owned mining operations.' Image Screenshot of the false X post, published on May 28, 2025 The post includes side-by-side photos of Namibia's President Netumbo Nandi-Ndaitwah and US President Donald Trump. Similar posts were shared thousands of times more on X and other platforms, including Facebook, TikTok and blogs. Nandi-Ndaitwah, who was elected in March, placed the country's oil and gas industries under direct presidential control the day after her inauguration. They previously fell under the Ministry of Energy and Mines (archived here). However, the government has not announced the cancellation of any energy contracts with the United States. No announcements A keyword search for 'Namibia cancels oil and gas with the US' turned up more posts repeating the false claim, as well as articles debunking it (archived here). The posts began circulating at about the same time as claims debunked by AFP Fact Check alleging that Namibia had announced the deportation of 500 Americans. As reported by AFP in April, Nandi-Ndatiwah explained that the oil and gas sector had the potential to transform Namibia's economy within the next five years by securing energy supplies and creating jobs (archived here). 'Mining contributes 12 percent to our gross domestic product and over 50 percent of our foreign exchange earnings. Regrettably, this figure does not reflect the true potential of mining and our mineral resources,' she was quoted as saying. On May 30, 2025, her presidency responded to the viral posts by labelling them 'fake news' (archived here). Namibia's presidency reiterated this to AFP Fact Check on June 4, 2025. 'The Namibian government has not at any point cancelled any contracts with investors from the United States in the mining, oil and gas sectors,' said press secretary Alfredo Hengari. He added that 'it is not the policy of the government to cancel contracts that are binding'. A US State Department spokesperson told AFP Fact Check on June 11, 2025: 'The online claims that Namibia has cut off the United States from mining and gas are false.' Foreign investment Contrary to the claim, Namibia has become a global exploration hotspot with several international gas and oil companies actively exploring its coasts in recent years (archived here). At the start of 2025, American firm Chevron announced that it had not found commercially viable gas in Namibia's Orange Basin By April, however, the company confirmed it would continue exploration in the Walvis Basin in 2026 or 2027, where firms including TotalEnergies, Shell, and Galp have made discoveries. Similarly, British multinational Shell deemed its Namibia oil discoveries uncommercial due to high gas levels in January. However, France's TotalEnergies believes it can handle these geological challenges, but its investment decision hinges on maintaining production costs below $20 per barrel (archived here). Another American corporation, ExxonMobil, is investigating (here and here) the country's potential in the Namibe Basin (archived here and here). The state itself, through the National Petroleum Corporation of Namibia (NAMCOR), holds a 10 percent stake in its exploration partnership with TotalEnergies (50.5 percent), QatarEnergy (30 percent) and Impact Oil and Gas (9.5 percent) (archived here). As a top uranium producer, Namibia also announced in April 2025 that it will launch talks this year on its first nuclear energy plant, seeking to exploit its rich natural wealth to transform its economy (archived here).
Euronews
3 hours ago
- Euronews
UN nuclear watchdog finds Iran in breach of its obligations
An Air India plane bound for London's Gatwick airport with 232 passengers and 12 crew members on board has crashed on takeoff at Ahmedabad airport on Thursday. There were 169 Indian nationals, 53 British nationals, one Canadian national and seven Portuguese nationals on board, according to the airline. The injured are being taken to the nearest hospitals. A dedicated passenger hotline has been set up for those affected. Local media reported that the plane crashed into a medical college hospital in Ahmedabad shortly after it left the runway. Unverified photos show the tail of the plane lodged into a building with plumes of black smoke billowing behind it.. It is unclear how many have been injured as a result of the accident. Indian Prime Minister Narendra Modi said in a post on X that "the tragedy in Ahmedabad has stunned and saddened us. It is heartbreaking beyond words." India's Aviation Minister Kinjarapu Ram Mohan Naidu said he was "shocked and devastated" by the news of the crash in the Indian state of Gujarat. "We are on highest alert. I am personally monitoring the situation and have directed all aviation and emergency response agencies to take swift and coordinated action," Ram Mohan Naidu said. "Rescue teams have been mobilised, and all efforts are being made to ensure medical aid and relief support are being rushed to the site. My thoughts and prayers are with all those on board and their families." Foreign Secretary David Lammy said the UK Foreign Office has arranged crisis teams in India and the UK. He told the House of Commons: "My thoughts, and I'm sure those of the entire House, are with those who've been affected by the tragic plane crash in India this morning. "We know that British nationals were on board and I can confirm that the FCDO is working urgently with local authorities to support British nationals and their families, and has stood up a crisis team in both Delhi and in London." The chief minister of Gujarat wrote on X that officials have been instructed to carry out "immediate rescue and relief operations" and to make arrangements on a "war footing". Flight tracking data shows the aircraft was a Boeing 787-8 Dreamliner — the first crash involving this model. The jet was 11 years old. "We received the last signal from the aircraft at 08:08:51 UTC, just seconds after takeoff," Flight Radar wrote in a post on X. The aircraft was scheduled to arrive at 6:25 pm local time (7:25 pm CEST). Videos from the scene show a low-flying aircraft trailing flames and descending toward a residential neighbourhood before bursting into orange and black smoke. Meghaninagar is a residential suburb in the Sabarmati area of Ahmedabad in India's west. The UN nuclear watchdog's board of governors on Thursday formally found that Iran is not complying with its nuclear obligations for the first time in 20 years, a move that could lead to further tensions and set in motion an effort to restore United Nations sanctions on Tehran later this year. Iran immediately responded to the International Atomic Energy Agency board's vote, stating that it will establish a new enrichment facility. The announcement said the facility will be 'in a secure location". 'The Islamic Republic of Iran has no choice but to respond to this political resolution,' the Iranian Foreign Ministry and the Atomic Energy Organisation of Iran said in a joint statement. Nineteen countries on the IAEA's board, which represents the agency's member nations, voted for the resolution, according to diplomats who spoke on condition of anonymity to describe the outcome of the closed-door vote. Russia, China and Burkina Faso opposed it, 11 abstained ,and two did not vote. In the draft resolution seen by media outlets, the board of governors renews a call on Iran to provide answers 'without delay' in a long-running investigation into uranium traces found at several locations that Tehran has failed to declare as nuclear sites. Western officials suspect that the uranium traces could provide evidence that Iran had a secret nuclear weapons program until 2003. France, Germany, the United Kingdom and the United States proposed the resolution. In Brussels, the European Commission expressed support for the text and called on Iran to "restore full cooperation with the agency and fully implement its obligations". "We call on Iran to show restraint and avoid any step that would further escalate the situation," a Commission spokesperson said on Thursday afternoon. The vote comes at a sensitive time, as tensions in the region have been rising. On Wednesday, the US State Department announced that it is drawing down the presence of non-essential personnel in the Middle East. The European Commission said its "limited" diplomatic presence on the ground had been "informed" about the Pentagon's plan, but that no evacuation order would be issued to its staff for now. US President Donald Trump has previously said that Israel or Washington could carry out airstrikes targeting Iranian nuclear facilities if negotiations failed. The US and Iran have been holding talks on Tehran's rapidly advancing nuclear program. Oman's foreign minister said earlier Thursday that a sixth round of negotiations will be held in his country on Sunday. The draft resolution makes a direct reference to the US-Iran talks, stressing its 'support for a diplomatic solution to the problems posed by the Iranian nuclear program, including the talks between the United States and Iran, leading to an agreement that addresses all international concerns related to Iran's nuclear activities, encouraging all parties to constructively engage in diplomacy.' This article has been updated to reflect the European Commission's reaction. A curfew is in place for a second night in downtown Los Angeles after a full week of clashes between protesters and authorities sparked by immigration raids in the city. Police detained more than 20 people on the first night of the curfew, mostly for violating the lockdown. A demonstration in Los Angeles' civic centre just before the start of the second night of the city's curfew briefly turned chaotic when police in riot gear — many on horseback — charged at a group as police used projectiles to break up hundreds of demonstrators. The city's nightly lockdown will remain in effect as long as necessary, according to Los Angeles Mayor Karen Bass. 'If there are raids that continue, if there are soldiers marching up and down our streets, I would imagine that the curfew will continue,' Bass said. More than 400 people have been arrested by Los Angeles police since Saturday, the vast majority for violating the restriction on movement in the area. Prosecutors have charged three others for possession of a gun, a Molotov cocktail and assault against a police officer. As the overnight curfew began, Bass wrote on X that it was designed to "stop bad actors who are taking advantage of the president's chaotic escalation". She earlier blamed the demonstrations on Trump's immigration raids, claiming that the move had "provoked residents". "A week ago, everything was peaceful," she told a news conference on Wednesday. Los Angeles was "part of a national experiment to determine how far the federal government can go in taking over power from a local government, from a local jurisdiction," she suggested. Dozens of mayors from across the Los Angeles area banded together to demand that the Trump administration stop the immigration raids. Trump however, showed no sign of heeding their pleas. A total of 4,000 National Guard troops and 700 Marines have been deployed by the US president to squash the unrest, despite objection from California's Democratic governor Gavin Newsom. Around 500 of the National Guard troops deployed in LA were trained to accompany agents on immigration raids, Major General Scott Sherman said Wednesday. 'We are expecting a ramp-up,' Sherman said. Newsom has asked a federal court to put an emergency stop on the military helping immigration agents in LA. The Trump administration called the lawsuit a 'crass political stunt endangering American lives" in its official response on Wednesday. The city 'would be burning to the ground' if he had not sent in the military, Trump said. The military is now closer to engaging in law enforcement actions such as deportations. The Guard has the authority to detain people who attack officers temporarily, but any arrests must be made by law enforcement. On Wednesday, demonstrations spread to other cities including Dallas and Austin in Texas and Chicago, where thousands rallied and more arrests were made — including 86 in New York. In Texas, police in Austin used chemical irritants to disperse several hundred demonstrators on Monday. Republican Governor Greg Abbott's office said Texas National Guard troops were 'on standby" in areas where demonstrations are planned. A 66-year-old woman in Chicago was injured when she was struck by a car during downtown protests Tuesday evening, police said. Sherman noted that protests across the nation were being discussed. 'I'm focused right here in LA, what's going on right here. But you know, I think we're, we're very concerned.'
Euronews
6 hours ago
- Euronews
Hamas kills 5 aid workers in Gaza Humanitarian Foundation bus attack
Hamas "brutally attacked" a bus carrying the Gaza Humanitarian Foundation (GHF) staff to a distribution site near the southern city of Khan Yunis on Wednesday night, killing at least five, the US-backed charity said. "There are at least five fatalities, multiple injuries and fear that some of our team members may have been taken hostage," GHF said in a statement. The five killed staff members are Palestinian. 'We condemn this heinous and deliberate attack in the strongest possible terms,' GHF said. 'These were aid workers. Humanitarians. Fathers, brothers, sons, and friends, who were risking their lives everyday to help others.' Israel's foreign ministry reacted to the news by stating on X that "Hamas is weaponising suffering in Gaza -- denying food, targeting lifesavers and forsaking its own people." Reverend Johnnie Moore, a Christian evangelical advisor to US President Donald Trump who was recently appointed head of GHF, called the killings 'absolute evil' and lashed out at the UN and Western countries over what he said was their failure to condemn them. 'The principle of impartiality does not mean neutrality. There is good and evil in this world. What we are doing is good and what Hamas did to these Gazans is absolute evil,' he wrote on X. Israel and the US say the new system is needed to prevent Hamas from siphoning off aid from the long-standing UN-run distribution scheme, which is capable of delivering food, fuel and other humanitarian assistance to all parts of Gaza. UN officials deny there has been any systematic diversion of aid by Hamas, and instead say they have struggled to deliver it because of Israeli restrictions and the breakdown of law and order in Gaza. The killings early Wednesday were carried out by the Hamas Sahm police unit, which Hamas claims it established to combat looting. The unit released video footage showing several dead men lying in the street, saying they were Abu Shabab militia fighters who had been detained and killed for collaborating with Israel. It was not possible to verify the images or the claims around them. Abu Shabab officials denied that the images showed members of their militia. The GHF began operating in late May, stating it has distributed more than 7 million meals worth of food during the first week of its mandate. An Air India plane bound for London's Gatwick airport has crashed on takeoff at Ahmedabad airport on Thursday, according to reports. There were more than 100 people on board at the time of the crash. There has been no official confirmation of casualties at this time. India's Aviation Minister Kinjarapu Ram Mohan Naidu said he was "shocked and devastated" by the news of the crash in Ahmedabad. "We are on highest alert. I am personally monitoring the situation and have directed all aviation and emergency response agencies to take swift and coordinated action," Ram Mohan Naidu said. "Rescue teams have been mobilised, and all efforts are being made to ensure medical aid and relief support are being rushed to the site. My thoughts and prayers are with all those on board and their families." Flight tracking websites show the aircraft is a Boeing 787-8 Dreamliner. "We are following reports of a crash of Air India flight AI171 from Ahmedabad to London. We received the last signal from the aircraft at 08:08:51 UTC, just seconds after takeoff," Flight Radar wrote in a post on X. The aircraft was scheduled to arrive at 6:25 pm local time (7:25 pm CEST). Unverified videos on social media showed black plumes of smoke billowing and an aircraft slowly descending on a residential area. Meghaninagar is a residential suburb in the Sabarmati area of Ahmedabad, in the western Indian state of Gujarat. Our journalists are working on this story and will update it as soon as more information becomes available.
