With Trump's Tariffs, Is It Time to Buy the Dip in Lululemon Stock?

Core Insights - Lululemon's year-over-year results are showing a slowdown, with conservative guidance reflecting slower consumer spending expectations [1][4] - Revenue growth has decreased significantly since its peak in 2022, with a reported 8% increase excluding the 54th week in fiscal 2024 [2][3] - The company is facing challenges due to high prices amid cautious consumer behavior, leading to weaker demand despite a 13% revenue increase in the fourth quarter [3][4] Financial Performance - Lululemon reported a nearly 83% increase in net income for 2024, amounting to $12.20 per diluted share [7] - The guidance for 2025 includes expectations for diluted earnings per share between $14.95 and $15.15, representing a conservative year-over-year increase of 2.1% [8] Market Challenges - The company is impacted by new tariffs on Vietnam, which produces 40% of its products, complicating its pricing strategy [5][6] - The ongoing tariff situation, particularly from the U.S. trade policies, adds pressure to Lululemon's operations and market positioning [6][7] - The stock has declined over 29% year-to-date due to fears surrounding tariffs and a weakened consumer environment [4][9]