About lululemon athletica inc. - Common Stock (LULU)
Lululemon Athletica is a leading retailer specializing in athletic apparel and accessories, primarily focused on yoga, running, and workout gear. The company offers a wide range of high-quality, performance-oriented clothing for both men and women, as well as a selection of lifestyle products that promote an active and healthy lifestyle. Recognized for its innovative designs and commitment to sustainability, Lululemon encourages a community-oriented culture through fitness programs and events, fostering a strong brand loyalty among its customers. Read More
The United States announced sweeping tariffs on several trading partners, including Asian nations such as Vietnam, Indonesia, and Bangladesh, which manufacture shoes and clothes for American labels.
Economist Peter Schiff warned on Thursday that Nike Inc. won't shift production to the United States despite newly imposed tariffs, predicting higher prices and reduced domestic sales for the footwear giant.
Goldman Sachs analyst Brooke Roach warns that U.S. tariff hikes will significantly impact retail, with China's tariff rate soaring to 54% and key sourcing nations like Vietnam (46%) and Cambodia (49%) facing steep increases. Apparel and footwear tariffs will average 38%, forcing brands to adjust pricing and negotiate costs.
Shares of athletic apparel retailer Lululemon (NASDAQ:LULU)
fell 15% in the pre-market session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
President Donald Trump's sweeping new trade tariffs sent shockwaves through global markets on Thursday, triggering a massive sell-off that echoed the COVID-19 pandemic-era routs, as investor risk appetite vanished in a flash.
The SPDR S&P 500, which tracks the S&P 500, is facing heavy selling pressure in Wednesday's after-hours session following reciprocal tariffs from the Trump Administration.
Lululemon's solid quarter was overshadowed by weak guidance; guidance is for growth on the top and bottom lines sufficient to sustain the capital return.
Friday’s market plunge capped off a bearish week and likely the worst quarter since 2022. Tariffs are the news headline, and the Magnificent 7 are the biggest drag on the index price declines. Now, add the employment data to the list of concerns.
