“`html
Lululemon Shares Plunge After Disappointing Outlook
By Anya Sharma | NEW YORK – 2025/09/05 09:44:33
Shares of Lululemon Athletica Inc.experienced a significant drop in extended trading following the release of a weaker-than-expected full-year forecast. The company’s projections fell short of analysts’ expectations, triggering investor concern.
While the company managed to surpass earnings estimates for the second quarter, it narrowly missed revenue targets. Furthermore, Lululemon anticipates that tariffs will negatively impact its full-year profits by an estimated $240 million.
Lululemon projects full fiscal-year earnings to be in the range of $12.77 to $12.97 per share, a figure considerably lower than Wall Street’s anticipated $14.45 per share. The company also forecasts full-year revenue between $10.85 billion and $11 billion, while analysts had expected $11.18 billion.
CEO Calvin McDonald addressed the situation on a call with analysts, stating, “We are facing yet another shift today within the industry related to tariffs and the cost of doing business. The increased rates and removal of the de minimis provisions have played a large part in our guidance reduction for the year.”
Here’s a summary of Lululemon’s second-quarter performance compared to Wall Street expectations, based on a survey of analysts by LSEG:
- Earnings per share: $3.10 vs. $2.88 expected
- Revenue: $2.53 billion vs. $2.54 billion expected
Following the announcement,shares of Lululemon plummeted by more than 12% after the closing bell on Thursday.Year-to-date, the stock has declined by over 45%.
“We
