Lululemon Faces Stock Plunge Amid Holiday Season Woes
Lululemon's shares dropped 20% after the company forecasted a tepid holiday season due to weak demand and high tariffs. The brand slashed its 2025 projections and faces increased competition. U.S. sales have declined, with only international markets showing growth, and tariff costs threaten further financial strain.
Lululemon Athletica suffered a significant 20% drop in its stock value as the market acknowledges a challenging holiday season ahead for the Canadian yogawear retailer. With disappointing demand and growing tariff burdens, the company has adjusted its previous 2025 sales and profit forecasts downward.
Notably, the company faces dwindling interest in its popular Scuba and Dance Studio pants, prompting an urgent call for innovation and a reduced reliance on these best-selling items. Analysts have expressed concerns that the company's turnaround efforts are unlikely to rapidly reverse the weakening demand amid prevailing economic challenges.
As Lululemon's U.S. revenue experiences a downturn, with rivals like Alo Yoga and Vuori gaining traction, the company is pivoting its efforts towards expanding in international markets like China. Despite a 15% rise in international sales, the imposition of U.S. tariffs and policy changes loom large, threatening to increase import costs substantially.
(With inputs from agencies.)
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