Lululemon’s same-store sales in the Americas fell 2%|ajay_suresh|CC BY 2.0
Lululemon’s stock dropped nearly 20% last week after the company warned that tariffs and cautious shoppers would shrink its 2025 profits.
CEO Calvin McDonald said US consumers are now more selective about spending.
The company slashed its full-year earnings forecast to $14.58–$14.78 per share, down from $14.95–$15.15. The activewear company expects lower profits in the second quarter too.
Lululemon produces goods in China and Southeast Asia, where US tariffs range from 10% to 30%.
To manage rising costs, executives said they are working with suppliers, cutting shipping expenses, and planning minor price hikes. Same-store sales in the Americas fell 2%.
While the first-quarter results matched analyst expectations, rivals such as Alo Yoga and Beyond Yoga are gaining ground. Some analysts believe Lululemon’s market dominance may be slipping.