Friday, 3 Oct 2025
Hot News
Schlitt’s Streak: Yankees Advance to ALDS on Rookie Cam Schlittler’s 12-Strikeout Gem
March for 1968 Mexican student massacre eclipsed by support for Gaza | Protests News
Shutdown Is GOP’s Fault Because They Won’t ‘Reverse Themselves’
Maharashtra government cancels 10% MSRTC fare hike as floods worsen across state
Underdog Promo Code FOXSPORTS: Play $5, Get $100
Get Fast News Updates – Stay Ahead with USA Blogger
  • Home
  • Business
    • Realtor
    • CEO
    • Founder
    • Entrepreneur
    • Journalist
  • Health
    • Doctor
    • Beauty cosmetics
    • Plastic Surgeon
  • Entertainment
  • Sports
    • Coach
    • Athlete
    • Fitness trainer
  • Life Style
  • 🔥
  • USA News
  • International News
  • Politics News
  • Cryptocurrency
  • Technology
  • Travel
Font ResizerAa
Get Fast News Updates – Stay Ahead with USA BloggerGet Fast News Updates – Stay Ahead with USA Blogger
  • Home
  • USA
  • International
  • Business
  • Crypto
  • Economy
  • Entertainment
  • Health
  • Life Style
  • Politics
  • SocialMedia
  • Sports
  • Technology
  • Travel
Search
  • Home
  • USA
  • International
  • Business
    • Realtor
    • CEO
    • Founder
    • Entrepreneur
    • Journalist
  • Crypto
  • Economy
  • Entertainment
  • Health
    • Doctor
    • Plastic Surgeon
    • Beauty cosmetics
  • Life Style
  • Politics
  • SocialMedia
  • Sports
    • Athlete
    • Coach
    • Fitness trainer
  • Technology
  • Travel
Follow US
©2025 USA Bloger . All Rights Reserved.
Get Fast News Updates – Stay Ahead with USA Blogger > Blog > Business > Lululemon shares drop 15% as CEO says inflation, economic concerns are weighing on spending
Business

Lululemon shares drop 15% as CEO says inflation, economic concerns are weighing on spending

Robert Adams
Robert Adams
Share
SHARE

Lululemon beat Wall Street expectations for fiscal fourth-quarter earnings and revenue, but issued 2025 guidance that disappointed analysts.

On an Thursday earnings call, CEO Calvin McDonald said the athleticwear company conducted a survey earlier this month that found that consumers are spending less due to economic and inflation concerns, resulting in lower U.S. traffic at Lululemon and industry peers. However, he said, shoppers responded well to innovation at the company.

“There continues to be considerable uncertainty driven by macro and geopolitical circumstances. That being said, we remain focused on what we can control,” McDonald said.

Shares of the apparel company plunged 15% on Friday morning.

Lululemon was only the latest retailer to say it expects slower sales for the rest of this year as concerns grow about a weakening economy and President Donald Trump’s tariffs. Even so, the Canada-based company said it expected only a minimal hit to profits from the U.S. trade war with countries including Canada, Mexico and China.

Here’s how the company did compared with what Wall Street was expecting for the quarter ended Feb. 2, based on a survey of analysts by LSEG:

  • Earnings per share: $6.14 vs. $5.85 expected
  • Revenue: $3.61 billion vs. $3.57 billion expected

Fourth-quarter revenue rose from $3.21 billion during the same period in 2023. Full-year 2024 revenue came in at $10.59 billion, up from $9.62 billion in 2023.

Lululemon’s fiscal 2024 contained 53 weeks, one week longer than its fiscal 2023. Excluding the 53rd week, fourth-quarter and full-year revenue both rose 8% year over year for 2024.

Lululemon expects first-quarter revenue to total $2.34 billion to $2.36 billion, while Wall Street analysts were expecting $2.39 billion, according to LSEG. The retailer anticipates it will post full-year fiscal 2025 revenue of $11.15 billion to $11.30 billion, compared to the analyst consensus estimate of $11.31 billion.

For the first quarter, the company expects to post earnings per share in the range of $2.53 to $2.58, missing Wall Street’s expectation of $2.72, according to LSEG. Full-year earnings per share guidance came in at $14.95 to $15.15 per share, while analysts anticipated $15.31.

CFO Meghan Frank said on the Thursday earnings call that gross margin for 2025 is expected to fall 0.6 percentage points due to higher fixed costs, foreign exchange rates and U.S. tariffs on China and Mexico.

Lululemon reported a net income for the fourth quarter of $748 million, or $6.14 per share, compared with a net income of $669 million, or $5.29 per share, during the fourth quarter of 2023.

Comparable sales, which Lululemon defines as revenue from e-commerce and stores open at least 12 months, rose 3% year over year for the quarter. The comparison excludes the 53rd week of the 2024 fiscal year. Analysts expected the metric to rise 5.1%.

Comparable sales in the Americas were flat, while they grew 20% internationally. Lululemon has been facing a sales slowdown in the U.S., although McDonald said its U.S. business stabilized in the second half of the year and partially attributed the improvement to new merchandise. He added that Lululemon will expand its stores to Italy, Denmark, Belgium, Turkey and the Czech Republic this year.

You Might Also Like

Editorial. Pressure tactics – The Hindu BusinessLine

97% of claims settled under PMFBY; Andhra Pradesh tops in pending payouts

Former Treasury Secretary Janet Yellen to join global advisory board for bond giant Pimco

The probability of a recession is approaching 50%, Deutsche markets survey finds

Wizz Air to restart Tel Aviv flights in August

Share This Article
Email Copy Link Print
Previous Article Honoring Jewish American WWII Soldiers: A Legacy of Bravery and Sacrifice
Next Article New Soundboard Review: Pricing is Not Always the Only Criteria