Fri, 05 Sep 2025

Fri, 05 Sep 2025 Lululemon shares slide as tariffs and weaker sales take their toll

The athleisure company also faces rising competition from copycats and other sportwear brands.

* Lululemon shares fell by over 15% on Thursday due to a warning from the company about the impact of US tariffs and the closure of a duty-free loophole.
* The Canadian company estimates that it will lose around $240m (£178.4m) this year as a result of the tariffs and the de minimis exemption being removed.
* Lululemon's sales forecast for the next three months has been lowered to between $2.47bn to $2.5bn, which is below analyst expectations.
* The removal of the de minimis rule will disrupt the company's US e-commerce shipments and have a "significant impact" on its earnings.
* Lululemon is considering ways to soften the impact of tariffs by adjusting its supply chain and cutting costs, but changes will take time.
* The company's boss Calvin McDonald has stated that Lululemon faces increasing competition from lower-priced rivals like Vuori and Alo Yoga.
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