Latest news with #MeghanFrank
Miami Herald
20 hours ago
- Business
- Miami Herald
Bad news for Lululemon customers as new tariffs take a toll
I haven't bought new Lululemon clothing since, I don't know…2017? (Yes, they're still going strong.) But recently, I put on a pair of leggings and noticed my dog Bentley may or may not have chewed a hole or two (let's just say he's lucky he's cute). Anyways, I decided it was probably time for a long-overdue mini Lululemon shopping spree. Obviously, I'm not in a rush (despite Bentley's best efforts). Still, I've been slowly making a mental list of all the fun new things I want to buy. Related: Lululemon rival, Alo Yoga sued over social media claims But now? I might need to rethink that plan. The brand just raised a red flag on its latest earnings call-and while most shoppers haven't heard about it yet, new cost pressures could soon start affecting what customers pay in stores and online. In other words: If you're planning to stock up on your favorite Align leggings, that go-to Define jacket, or even a few pairs of men's underwear (don't worry, fellas - I've got your back too), you may want to do it sooner rather than later. The new tariffs are already taking a bite out of Lululemon's profits. The company says it expects to make less money on each item it sells this year compared to 2024-and it's pointing to rising import costs as the reason why. "That's all driven by the net impact of tariffs," CFO Meghan Frank said on the earnings call. The new U.S. tariffs on apparel sourced from China and other markets are forcing Lululemon ( (LULU) ) to rethink its pricing and sourcing strategy. Related: Lululemon's latest viral product reveals something much bigger The company is taking a measured approach: it will implement modest price increases on select items in its assortment, while working with vendors to find supply chain efficiencies. "We've looked across the enterprise for how we can offset increased tariff rates," CEO Calvin McDonald said. "Our work streams include managing expenses, identifying efficiencies within our supply chain, and evaluating our position in the marketplace related to pricing." While some mitigation efforts will take effect later this year and into 2026, Lululemon says shoppers should expect to see higher prices on some items in the near future. For Lululemon customers, the tariff squeeze means a few things. First, while the brand's leadership emphasized that most price increases will be modest and selective, they are coming-and could hit popular categories like leggings, tops, and lifestyle products. Second, as Lululemon adjusts sourcing and manages costs, it may impact product availability and assortment During the call, executives highlighted that Lululemon's strong demand in core categories like Align leggings and new product hits like Daydrift and Glow-Up leggings puts it in a good position to manage pricing and innovation going forward. Finally, even with $1.3 billion in cash and no debt, Lululemon is proving that no brand is immune when tariffs hit this hard. U.S. shoppers are already showing signs of caution, and further price increases could affect purchase behavior. "We believe our guests will continue to live an active and healthy lifestyle and turn to us for the technical apparel we are known for," McDonald said. But as tariffs keep squeezing Lululemon's margins, customers should brace themselves-their next shopping trip could come with some unwanted sticker shock. Guess I better get moving with that trip to Lululemon. Related: Lululemon analysts reboot stock price target after earnings The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Vancouver Sun
21 hours ago
- Business
- Vancouver Sun
Social media users freaking out over Lululemon's planned price increases
Lululemon enthusiasts are lashing out over the Canadian apparel company's plans to spike prices in response to tariffs. Late last week, the Vancouver-based, globally recognized company announced it would be increasing some prices . 'We are planning to take strategic price increases, looking item by item across our assortment as we typically do,' chief financial officer Meghan Frank told analysts on a call held as the company's share price tumbled 23% to US$255.32 in afterhours trading last Thursday. The price increases on products will be 'modest in nature' and only applied to a 'small' portion of Lululemon's products. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Customers can thank U.S. President Donald Trump's trade war. 'We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,' the company said in a recent statement. What it means is that brand's loyal cult-following of millennial and Gen-Z yoga types aren't splurging on the company's clothing as they perhaps once did. The clothing company said the hikes will roll out within weeks, but online reaction was instant. 'You better get it together. Lulu. Using tariffs as an excuse in your rest of the year outlook is not a smart move. Amazon/Walmart tried this it didn't go well. You're Down 65$ today. Our family was a big lulu fan not so much anymore,' one user posted to social-media site X. 'For what they charge for their products, you'd think it was made in America,' another post read. You better get it together. Lulu. Using tariffs as an excuse in your rest of the year outlook is not a smart move. Amazon/walmart tried this it didn't go well You're Down 65$ today. Our family was a big lulu fan not so much anymore. In 2024, 40% of Lululemon's products were made in Vietnam, and 28% of its fabrics came from mainland China. Both countries have been hit hard by Trump's trade crackdown. But some folks seem to have had enough. 'It can't be that yoga pants shouldn't cost $125 a pair. No. That's not it,' someone said, while another posted, 'Their stuff is ridiculously overpriced… total ripoff.' 'Lululemon's collapse isn't about tariffs — it's about betting on foreign manufacturing while ignoring American resilience,' yet another critic said.
Yahoo
a day ago
- Business
- Yahoo
Lululemon sees Q1 FY25 revenue surge, exceeding expectations
Canadian athletic apparel retailer Lululemon athletica has reported growth across channels, categories and markets including the US in the first quarter (Q1) of fiscal 2025 (FY25), which concluded on 4 May. The company saw a 7% increase in net revenue to $2.4bn - an 8% rise on a constant dollar basis. This growth was particularly strong internationally, with net revenue surging 19%, or 20% on a constant dollar basis. In the Americas, net revenue grew 3%, or 4% on a constant dollar basis. Comparable sales across the company rose 1%, despite a 2% decrease in the Americas, which adjusted to a 1% drop on a constant dollar basis. Conversely, international comparable sales jumped 6%, or 7% on a constant dollar basis. The company's gross profit saw an 8% increase to $1.4bn, with gross margin expanding by 60 basis points to 58.3%. Income from operations showed a modest 1% rise to $438.6m, with operating margin declining by 110 basis points to 18.5%. The effective income tax rate for the quarter was slightly higher at 30.2%, compared to 29.5% in the same quarter of the previous year. Lululemon athletica CEO Calvin McDonald stated: "In the first quarter, we achieved growth across channels, categories and markets including the US, reflecting the continued strength and agility of our business model. Guests responded well to the product innovations, newness and brand activations we delivered around the world. As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offence, while we continue to invest in the growth opportunities in front of us." Diluted earnings per share (EPS) for the quarter were reported at $2.60, up from $2.54 in the Q1 2024. Lululemon added three net new company-operated stores, bringing the total to 770. In the second quarter (Q2) of 2025, the brand expects net revenue to range between $2.54bn and $2.56bn - growth of 7% to 8%. For the full year 2025, the company maintains its net revenue forecast at between $11.15bn and $11.30bn, representing a growth of 5% to 7%, or 7% to 8% when excluding the 53rd week of 2024. Diluted EPS is expected to be between $14.58 and $14.78. Lululemon athletica chief financial officer Meghan Frank stated: "Looking ahead, we remain focused on our strategy and continue to operate with discipline as we drive the business forward. We are grateful to our teams around the world who are enabling us to deliver these consistent results." "Lululemon sees Q1 FY25 revenue surge, exceeding expectations" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Toronto Sun
2 days ago
- Business
- Toronto Sun
Social media users freaking out over Lululemon's planned price increases
Lululemon enthusiasts are lashing out over the Canadian apparel company's plans to increase prices in response to tariffs. Photo by Joe Raedle / GETTY IMAGES Lululemon enthusiasts are lashing out over the Canadian apparel company's plans to spike prices in response to tariffs. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Late last week, the Vancouver-based, globally recognized company announced it would be increasing some prices. 'We are planning to take strategic price increases, looking item by item across our assortment as we typically do,' chief financial officer Meghan Frank told analysts on a call held as the company's share price tumbled 23% to US$255.32 in afterhours trading last Thursday. The price increases on products will be 'modest in nature' and only applied to a 'small' portion of Lululemon's products. Customers can thank U.S. President Donald Trump's trade war. 'We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,' the company said in a recent statement. What it means is that brand's loyal cult-following of millennial and Gen-Z yoga types aren't splurging on the company's clothing as they perhaps once did. The clothing company said the hikes will roll out within weeks, but online reaction was instant. 'You better get it together. Lulu. Using tariffs as an excuse in your rest of the year outlook is not a smart move. Amazon/Walmart tried this it didn't go well. You're Down 65$ today. Our family was a big lulu fan not so much anymore,' one user posted to social-media site X. 'For what they charge for their products, you'd think it was made in America,' another post read. This advertisement has not loaded yet, but your article continues below. You better get it together. Lulu. Using tariffs as an excuse in your rest of the year outlook is not a smart move. Amazon/walmart tried this it didn't go well You're Down 65$ today. Our family was a big lulu fan not so much anymore. — #Liberationday (@StephenWil257) June 6, 2025 In 2024, 40% of Lululemon's products were made in Vietnam, and 28% of its fabrics came from mainland China. Both countries have been hit hard by Trump's trade crackdown. But some folks seem to have had enough. 'It can't be that yoga pants shouldn't cost $125 a pair. No. That's not it,' someone said, while another posted, 'Their stuff is ridiculously overpriced… total ripoff.' 'Lululemon's collapse isn't about tariffs — it's about betting on foreign manufacturing while ignoring American resilience,' yet another critic said. Sports Canada Sunshine Girls Columnists Sports
Yahoo
4 days ago
- Business
- Yahoo
Lululemon to raise prices as progress stalls in the US
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Lululemon is raising prices and prepping for a hit to gross margin as tariffs sweep the industry, executives said on a Thursday earnings call. CFO Meghan Frank said the price increases would be modest, strategic and apply to just a small portion of its assortment. They'll go into effect in the second half of Q2 and into Q3. The retailer largely maintained its guidance for the year, calling for roughly 5% to 7% revenue growth, but lowered earnings per share estimates. Lululemon also said margins would decrease more than planned given the current 30% tariffs on China and 10% on remaining countries. Gross margin is expected to decline by 110 basis points this year, compared to previous guidance for a 60 basis-point decrease. Revenue in the quarter was up 7% to $2.4 billion, with growth in the Americas landing at 3% and international up 19%. Comps in the quarter grew just 1% thanks entirely to international, as comps fell 2% in the Americas. While Needham analyst Tom Nikic called Lululemon's results 'fairly lackluster,' he and others noted that the market's reaction was outsized compared to the retailer's actual performance, especially given that guidance cuts were the result of tariffs. 'That said, the domestic business remains sluggish and international comp growth slowed dramatically in Q1, likely raising questions about the growth [algorithm] from here,' Nikic said in emailed comments. Lululemon store traffic declined in the quarter, especially in the U.S. market, Frank said. CEO Calvin McDonald noted that those shoppers in particular are being cautious about spending right now, making a recovery in the region more difficult. 'We're not seeing the same discerning consumer in Canada as we are seeing in the U.S. in terms of traffic as well as some other metrics that we monitor,' he said. He stressed that Lululemon still gained share across both men and women in the U.S. and said shoppers are responding well to newness in the assortment, including the No Line Align legging and the Daydrift trouser. The leggings will be in all the retailer's stores by September and the Daydrift will be restocked around the same time, potentially leading to more upside ahead. Wells Fargo analysts noted that newness has now returned to historic levels after the retailer last year fell short on choices for U.S. shoppers, but analysts were overall disappointed in the somewhat lengthy timeline for product rollouts and the lack of progress in the U.S. While analysts expected stabilization in the U.S., Wells Fargo said 'we received the opposite,' and Jefferies analysts noted bleakly that the Americas 'keeps getting worse.' 'Despite this decline, [management] continues to prioritize product newness and China expansion over addressing a pullback from core customers and evident traffic declines. We believe this misalignment is concerning,' Jefferies analysts led by Randal Konik said in emailed comments. 'Fixing the Americas should be the top priority given its size (75% mix), yet the focus on newness isn't resonating broadly and the unaddressed rise in competition has led to increased promotions.' Sign in to access your portfolio
