Lululemon Stock Falls on Profit ⁣Forecast

⁤ Updated June 06, 2025
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Lululemon AthleticaS stock price plummeted Friday ⁣after the company released a disappointing second-quarter outlook⁤ and reduced its full-year profit forecast. The athletic apparel maker’s shares dropped 20% in premarket trading following⁣ the proclamation.

The company ⁤anticipates second-quarter ⁢revenue between $2.54 billion and $2.56 billion, with earnings per share ranging ⁢from $2.85 to $2.90. These figures fall short ‍of analysts’ expectations of $2.57 billion in revenue and $3.28 EPS, ‍according⁣ to Visible Alpha.

While Lululemon still projects full-year sales of $11.15⁤ billion ⁣to ⁢$11.30 billion, it ⁤has lowered its EPS forecast to⁣ $14.58-$14.78, down from the previous estimate of $14.95-$15.15. In response, JPMorgan and UBS analysts reduced their price targets for Lululemon stock to $303 and $290, respectively.

CEO Calvin McDonald said customers have “responded well to ⁢the product innovations” but U.S. consumers “remain cautious right now, and⁣ they are being very ⁤intentional about their buying decisions.”

McDonald noted that consumers are reacting positively to new product innovations. However, he added that U.S. consumers are currently‍ exhibiting caution and making deliberate purchasing⁤ decisions, according to an AlphaSense transcript of lululemon’s earnings call.

CFO Meghan Frank said, “We are planning⁣ to‍ take strategic price‍ increases…on a ⁤small portion of our assortment, ‍and they will be modest in nature,” to mitigate tariff impacts.

CFO Meghan Frank‍ stated that⁣ Lululemon plans to implement strategic, modest price increases on select items to offset the impact of ‍tariffs. Frank also mentioned that the company ⁤is adjusting ⁣its supply chain, with more significant effects expected in the latter half of the⁤ year.

Lululemon’s first-quarter results aligned with expectations, reporting $2.37 billion in sales and $2.60 EPS. However, comparable sales growth of 1% lagged behind the anticipated‍ 4.56% growth.

What’s next

Lululemon will focus on strategic pricing⁤ and supply chain adjustments to navigate consumer caution and tariff pressures in the coming quarters.