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
Euronews
36 minutes ago
- Euronews
Israeli navy attacks Yemen's Houthi-held port city of Hodeida
Israel's navy said on Tuesday that it attacked docks in Yemen's rebel-held port city of Hodeida, the first time that its naval forces have conducted strikes against the Iran-aligned Houthis. The Houthis announced the attack via their al-Masirah news channel. They said the attack targeted docks in Hodeida, without elaborating. The facilities there are vital for aid shipments to the hungry, war-stricken nation. Since the start of the war in Gaza in October 2023, the Houthis have repeatedly launched missiles and drones targeting Israel, as well as attacks against commercial ships in what the rebels have described as acts of solidarity with the Palestinians. Late on Monday, Israel issued online warnings to Yemenis to evacuate from Ras Isa, Hodeida and al-Salif ports over the Houthis' alleged use of seaports for attacks. "The port is used to transfer weapons and is a further example of the Houthi terrorist regime's cynical exploitation of civilian infrastructure in order to advance terrorist activities," the Israeli military said in a statement Tuesday. Hodeida is also the main entry point for food and other humanitarian aid for millions of Yemenis since the war began when the Houthis seized Yemen's capital, Sanaa, in 2014. Writing on X on Tuesday, Israeli Defence Minister Israel Katz threatened the Houthis with a naval and air blockade if attacks on Israel continue. "We warned the Houthi terror organization that if they continue to fire at Israel they will face a powerful response and enter a naval and air blockade," he wrote. The majority of the missiles and drones that the Houthis have fired towards Israel have either not hit their targets or been intercepted. Israeli forces have carried several airstrikes in retaliation, including attacks on Saana International Airport. Between November 2023 and January 2025, the Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors. That has greatly reduced the flow of trade through the Red Sea corridor, which typically sees $1 trillion (€876 billion) of goods move through it annually. The Houthis paused attacks in a self-imposed ceasefire until the US launched a broad assault against the rebels in mid-March. However, just before US President Donald Trump began his Middle East trip in mid-May, he paused the attacks, saying the rebels had "capitulated" to Washington's demands. Earlier on Tuesday, US Secretary of Defence Pete Hegseth wrote on X that US Navy ships used passed through the Red Sea and its Bab el-Mandeb Strait "multiple times in recent days" without facing Houthi attacks. It's unclear how the Houthis will respond now that an attack from Israeli has come from the sea, rather than the air. Meanwhile, the wider decade-long war in Yemen between the Houthis and the country's exiled government — backed by a Saudi-led coalition — remains in a stalemate. Sixteen states have filed a lawsuit against the Trump administration regarding its proposal to permit the sale of forced-reset triggers, which enable semiautomatic rifles to fire at an increased rate, and return devices already seized to their owners. The lawsuit, which was announced on Monday, argues that the return of the triggers would violate federal laws, endangering both residents and law enforcement personnel, as well as potentially worsening gun violence. The suit was filed in a federal court in Maryland. There had been several legal battles over the devices, which replace the typical trigger on an AR-15-style rifle. The Biden administration had previously argued the triggers qualify as machine guns under federal law because constant finger pressure on the triggers will keep a rifle firing, essentially creating an illegal machine gun. Rare Breed Triggers – the manufacturer of the devices – says that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) misclassified them and disregarded requests to cease sales of the triggers prior to being sued by the Biden administration. The Justice Department announced a deal last month with the company permitting the sale of forced-reset triggers. Previously, the company was represented by David Warrington, who currently serves as Trump's White House counsel. As per the settlement, Rare Breed Triggers has agreed to refrain from manufacturing the devices for handguns, according to the Justice Department. The settlement also requires the ATF to return triggers that were either confiscated or voluntarily surrendered by their owners to the government. The lawsuit initiated by the states is being spearheaded by the attorneys general from Delaware, Maryland, and New Jersey. Other participating states include Colorado, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, Oregon, Rhode Island, Vermont, Washington, as well as the District of Columbia. All attorneys general from these states are affiliated with the Democratic Party, although the office in Hawaii is officially nonpartisan.
Euronews
2 hours ago
- Euronews
China says its exports to the US have plummeted ahead of trade talks
Shares in chip designer Alphawave rose sharply on Monday after the British-Canadian firm agreed to be acquired by US rival Qualcomm for around $2.4bn (€2.1bn) in cash. As of around 9.45am London time, Alphawave's stock had risen around 23% in daily trading on the LSE. Qualcomm's offer values each share at 183p, a 96% premium on the closing price seen on 31 March, the final day before Qualcomm and Alphawave announced they were holding discussions. The $2.4bn valuation is still half of the total worth attributed to Alphawave when it launched an IPO in 2021. At its stock market debut, Alphawave shares were worth 410p each and the group was valued at £3.1bn (€2.7bn), although the firm has generally traded well below this level since its IPO. The deal is expected to close in the first three months of 2026, subject to shareholder and regulatory approval. Alphawave designs semiconductor technology for data centres and AI applications, thus providing Qualcomm with an opportunity to diversify away from smartphone components. 'Qualcomm's acquisition of Alphawave Semi represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers,' said Tony Pialis, CEO of Alphawave Semi. 'By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities,' he added. Cristiano Amon, CEO of Qualcomm, commented on the deal: 'The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high growth areas, including data center infrastructure.' Alphawave said its directors would unanimously advise shareholders to vote in favour of the takeover. For the deal to go ahead, it would require a green light from investors representing 75% of shares. The takeover raises concerns about the attractiveness of listing in the UK, particularly after other high-profile departures from the LSE. Food-delivery service Deliveroo and cybersecurity and AI firm Darktrace have both agreed to be acquired by US firms. The fintech Wise also announced last week that it would be moving its primary listing to the US. China's exports rose 4.8% in May from a year earlier, according to data released on Monday just hours ahead of another round of trade talks between the US and China. The total was a bit lower than expected, as shipments to the United States fell 34.5% in the same time period. Imports declined 3.4% year-on-year, leaving a trade surplus of $103.2bn (€90.33bn). China exported $28.8bn to the United States in May (compared to $44 billion last year), while its imports from the US fell 7.4% to $10.8bn, the report said. Still, exports to Southeast Asia and the European Union remained robust, growing 14.8% and 12% year-on-year. 'The acceleration of exports to other economies has helped China's exports remain relatively buoyant in the face of the trade war,' Lynne Song of ING Economics said in a commentary. Still, trade slowed in May from an 8.1% jump in China's global exports in April. Many businesses had rushed orders to try to beat higher tariffs, even as some new import duties took effect or remained in place. Exports will likely rebound somewhat in June thanks to a 90-day suspension of most of the tariffs China and the US imposed on each other in their escalating trade war. 'But with tariffs likely to remain elevated and Chinese manufacturers facing broader constraints on their ability to sustain rapid gains in global market share, we think export growth will slow further by year-end,' Zichun Huang of Capital Economics said in a report. Despite the tariffs truce, the rancour between Beijing and Washington has persisted, with angry exchanges over advanced semiconductors, 'rare earths' that are vital to many industries, and visas for Chinese students at American universities. The next round of negotiations is due to take place on Monday in London, following a phone call last week between Trump and Chinese leader Xi Jinping. Other figures released on Monday highlight how slowing exports are impacting the world's second largest economy, since China imports many of the components and materials needed for the goods it assembles for the world. At the same time, China's own domestic markets are suffering. The government reported that consumer prices fell 0.1% in May, pointing to sluggish demand. The persisting deflation partly reflects lower food prices, economists said. Producer price deflation was worse, contracting 3.3% in May, its lowest level in almost two years, after falling 2.7% in April. Salaries vary widely across sectors and professions in Europe. While a number of jobs are disappearing, new ones are also emerging. Some roles, like those in healthcare, continue to be essential. So, which sectors offer the highest pay in Europe? And what are the top-earning jobs? Exploring these questions can help when choosing a career — though salary may not be the main driver for everyone. Euronews Business analyses the highest-paying roles in Europe, using data shared by the global hiring platform Indeed with our journalists. The analysis covers four countries (the UK, Germany, France and the Netherlands) and the salary data reflects annual earnings from May 2024 to April 2025. The occupation 'physicians and surgeons' is excluded from the main dataset, prompting a separate analysis. Medical consultants, radiologists, medical directors, orthodontists, and dentists are consistently among the highest-paid roles across all countries. These jobs appear in categories including: medical technician, medical information, nursing, and dental. This is especially true in the UK, where nearly half of the top 20 highest-paying jobs fall under these brackets. In France, three of the top four highest-paying jobs are also in these categories — particularly dental roles. Titles such as managing director, director of strategy, project director, and director of technology are well compensated across countries. These positions are found in sectors like sales, banking and finance, technology, and general management, indicating that leadership roles tend to carry premium compensation in many industries. Roles in software development, information design and documentation, and IT operations — like software engineer, data engineer, and SAP consultant — are well-paid, particularly in Germany and the Netherlands. While entry-level sales roles are less lucrative, senior roles like sales director, head of sales, and enterprise account executive show high earning potential. These roles often come with large pay packages in Germany and the Netherlands, where experienced sales professionals can earn salaries comparable to those seen in tech or management roles. Positions like tax director, labour law attorney (or an employment solicitor), and financial controller are consistently high-paying, particularly in Germany and the UK. These roles fall under legal, accounting, and banking and finance categories and reward deep regulatory or financial expertise. Job skills are constantly evolving, especially with advancements in technology. 'Continuous learning is essential in a fast-evolving market,' Pawel Adrjan, Director of Economic Research at Indeed, told Euronews Business. 'As was the case with all prior cases of technological innovations, professionals who proactively learn new tools, platforms, and methodologies will position themselves more competitively to work most efficiently with the emerging technologies.' In Germany, corporate tax advisors receive the highest annual median salary, at €145,000. The chart also displays mean salaries for comparison. Various sales roles, such as managing director and head of sales, follow closely, with median earnings ranging from €107,500 to €138,243. A labour law attorney earns €105,000, while a lawyer receives €93,334. System applications product (SAP) consultants earn just below the €100,000 threshold, with senior system engineers close behind at €95,000. Other tech roles such as IT security specialist and technical SAP consultant make around €90,000. In the management category, directors also earn approximately €90,000. There is only one medical title listed — dentists — earning a median salary of nearly €86,000. In France, dentists top the list with the highest annual median salary at €95,000, followed by orthodontists earning €78,750. In the tech sector, network architects receive €72,361, while medical technicians in the healthcare field make €70,000. A compliance officer in production and manufacturing earns €67,500. Roles like domain manager and sales agent follow, with salaries of around €65,000 and €64,855 respectively. The digital transformation consultant and mechanical designer earn €62,750 and €62,500. Several positions report identical median salaries of €60,000, including engineering director, real estate salesperson, operations director, senior sales representative, account executive, production director, human resources director, cloud architect (cloud IT professional) and loan broker advisor. Healthcare professions dominate the top end of the UK salary spectrum, with nine of the top 20 highest-paying roles in this sector. In the UK, fashion models top the list with a striking annual median salary of €166,390 (£140,000). They are followed by medical consultants, earning €145,821 (£111,412). Medical directors and radiologists both earn €137,566. Other high earners in the healthcare sector include orthodontists (€130,767), clinical consultants (€125,392), chief nursing officers (€124,793), and clinical directors (€109,442). Associate dentists (€116,785) and periodontists (€113,808) are also among the top earners. In sterling, their annual salaries range from £96,000 to £116,000. Senior leadership and technical roles also feature prominently: project directors earn €122,528, directors of technology €121,821, and microbiologists €121,313. In the Netherlands, roles in management, accounting, and software development are among the best-paid. General directors lead with a median annual salary of €115,000. Other top-paying roles include business controllers (€80,000), team leaders (€78,206), and engineers (€75,208). Finance roles like controllers and financial controllers also perform well, earning between €72,500 and €75,816. Salaries in sales and tech positions tend to cluster between €56,500 and €66,000, with roles such as sales manager, software engineer, data analyst, and account executive all falling within this range. 'Attending a top-ranked university can certainly influence job prospects and salary potential, especially in countries like France or the UK,' Pawel Adrjan said. He noted that graduating from elite educational institutions like grandes écoles and universities with a long history can be perceived as a signal of ability in the labour market. 'However, recent trends we observe on Indeed in both the UK and France show that formal education requirements in job postings are becoming less common, especially in high-skill fields like IT and data science, suggesting a gradual shift toward skills-based hiring,' he added. As jobs continue to evolve, it's completely natural for the highest-paying roles to change too. 'Over the next 5-10 years, we anticipate that green energy, AI/GenAI, cybersecurity, and biotechnology will produce new top-earning job titles,' said Adrjan of Indeed. He explained that roles like AI ethicist, key sustainability roles, GenAI engineers, and climate data analysts are gaining traction and are likely to move into the upper salary echelons as demand for specialised expertise in these areas grows.
Euronews
3 hours ago
- Euronews
Asian shares make modest gains as investors eye US-China talks
Asian shares were marginally higher on Tuesday as investors kept an eye on US-China trade talks that might help stave off a recession. Tokyo's Nikkei 225 gained 0.9% to 38,445.68, while the Kospi in South Korea jumped 0.3% to 2,865.12. Hong Kong's Hang Seng edged 0.3% higher, to 24,261.26 and the Shanghai Composite index was up 0.1% at 3,403.52. In Taiwan, the Taiex surged 2.1% to 22.253,46. Australia's S&P/ASX 200 advanced just less than 0.9% to 8.588,10. On Monday, the S&P 500 edged up just 0.1% and at 6,005.88 is within 2.3% of its record set in February. The Dow Jones Industrial Average slipped by 1 point, which is well below 0.1%, to 42,761.76. The Nasdaq composite added 0.3% to 19,591.24. A second day of talks between the US and China was planned after the two global powers met in London for negotiations. The hope is that they can eventually reach a deal to reduce painfully high tariffs against each other. Most of the tariff hikes imposed since US President Donald Trump escalated his trade war have been paused to allow trade in everything from tiny tech gadgets to enormous machinery. Hopes that President Donald Trump will lower his tariffs after reaching trade deals with countries around the world have helped the S&P 500 win back gains after it dropped roughly 20% from its record two months ago. The index is back above where it was when Trump shocked financial markets in April with his wide-ranging tariff announcement on so-called 'Liberation Day'. Some of the market's biggest moves came from the announcement of big buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy Alphawave Semi in a deal valued at $2.4bn (€2.1bn). IonQ, meanwhile, rose 2.7% after the quantum computing and networking company said it agreed to purchase Oxford Ionics for nearly $1.08bn (€947.1mn). On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3% after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products. Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk's relationship with Trump broke apart, and it rose 4.6% on Monday after flipping between gains and losses earlier in the day. The frayed relationship could end up damaging Musk's other companies that get contracts from the US government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceX's expense, rose 2.5%. In the bond market, the yield on the 10-year Treasury eased to 4.48% from 4.51% late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumers' expectations for coming inflation eased slightly in May. Economists expect a report due on Wednesday to show that inflation across the country accelerated last month to 2.5% from 2.3%. The Federal Reserve has been keeping its main interest rate steady as it waits to assess the inflationary effects of Trump's tariffs. A persistent increase in inflation expectations among US households could drive behaviour that creates a vicious cycle that only worsens inflation. In other dealings early on Tuesday, US benchmark crude oil picked up 31 cents to $65.45 per barrel. Brent crude, the international standard, also gained 31 cents, to $67.35. The dollar rose to 144.93 Japanese yen from 144.61 yen. The euro slipped to $1.1399 from $1.1421. L'Oréal has acquired a majority stake in the UK's Medik8 as it seeks to expand its position in the skincare market, the French beauty giant confirmed on Monday. As part of the deal, private equity firm Inflexion will remain a minority shareholder, and the current management committee will also stay in their roles. The cost of the stake is officially undisclosed, although the Financial Times reported last week that the potential deal was worth around €1bn. L'Oréal's share price was roughly unchanged on the news. 'We are delighted to welcome Medik8 to the L'Oréal family,' said Cyril Chapuy, President of L'Oréal LUXE. 'As a premium skincare range, with high levels of proven efficacy at an accessible price point, Medik8 perfectly complements our existing skincare portfolio,' he added. L'Oréal has been seeking to capitalise on the boom in science-driven skincare, partly driven by social media influencers. Brands already under its 'Dermatological Beauty Division' include La Roche-Posay, Cerave, Vichy, Skinceuticals, and Skinbetter Science. This unit brought in over €7bn in revenue in 2024, representing an almost 10% year-on-year rise, making it L'Oréal's fastest-growing division. Seeking to expand its portfolio, L'Oréal bought soap maker Aesop in 2023, and Korean beauty brand Dr.G in December. Last year, L'Oréal also acquired a 10% stake in skincare firm Galderma, as well as acquiring the beauty licence for Miu Miu. At the time of the Galderma deal, the French firm said it was 'increasingly investing in a more holistic approach, spanning the entire beauty routine' — thereby 'anticipating and intercepting the signs of skin ageing'. Medik8, founded in 2009, specialises in anti-ageing treatments and was bought by UK-based private equity firm Inflexion in 2021.
