Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica's shares fell 21% in premarket trading 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 Align yoga pants sell for $128 apiece on its website, will raise prices "modestly" for a "small portion of the assortment" and ramp up discounts for the rest of the year, company executives said.

Lululemon has struggled to retain shoppers, despite its efforts to introduce new 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 and On in raising prices in the US 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.

"My sense is that in the US, consumers remain cautious right now, and they are being very intentional about their buying decisions," CEO Calvin McDonald said on a post-earnings call.

The company's stock, which is down about 14% this year, was trading at $261.90 before the bell on Friday. The news dragged Nike's shares down 1.4%.

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.



Saudi 100 Brands Returns to Paris Fashion Week

Saudi 100 Brands Returns to Paris Fashion Week
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Saudi 100 Brands Returns to Paris Fashion Week

Saudi 100 Brands Returns to Paris Fashion Week

The Saudi Fashion Commission will present homegrown talents at Paris Fashion Week, held from June 24 to 27 on the fifth floor of La Samaritaine. The exclusive showroom dedicated to Saudi 100 Brands will highlight 11 trailblazing designers and their Spring–Summer 2026 collections.

This exceptional showcase, spearheaded by the Fashion Commission and its flagship Saudi 100 Brands program, aims to foster meaningful cultural exchange through contemporary Saudi fashion, the Saudi Press Agency (SPA) reported. It represents a key step in a long-term vision to establish the Kingdom as an essential presence in the global fashion industry.

CEO of the Fashion Commission of Saudi Arabia's Ministry of Culture Burak Çakmak said that the return of the Saudi 100 Brands program to Paris Fashion Week reflects a commitment to showcasing Saudi creativity at the highest levels.

He noted that the platform not only presents designers to a global audience but also deepens connections with the international fashion community, reinforcing the vision of making the Kingdom a driving force in shaping the future of fashion and fostering meaningful global partnerships.

CEO of Tranoï Boris Provost stated that Saudi fashion is experiencing remarkable momentum, expressing pride in the creative energy showcased by the Saudi 100 Brands program at Tranoï.

According to SPA, he highlighted the exhibition's role in presenting emerging talents on a global scale, noting that the collaboration with the Saudi Fashion Commission perfectly embodies this mission by providing an international stage for a new generation of designers in Paris, the fashion capital of the world.

The Saudi 100 Brands program is a long-term strategic initiative by the Saudi Fashion Commission. It aims to support generations of Saudi brands and contribute to the development of a sustainable local fashion industry.

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