Lululemon Stretched by Tariffs, Macro

Core Insights - Lululemon reported a revenue growth of 7.3% and earnings per share of $2.60, exceeding Wall Street expectations [2][4] - The company faces challenges in the Americas market, with a noted decline in comparable sales and a cautious outlook for future quarters [3][4] Financial Performance - Revenue for Q1 2025 was $2.4 billion, up from $2.2 billion in Q1 2024, reflecting a 7.3% increase [1] - Earnings per share increased from $2.54 to $2.60, a 2% rise [1] - Comparable sales in the Americas decreased by 2%, while international comparable sales grew by 6% [3] Market Reaction - Following the earnings report and guidance cut, Lululemon shares fell 20% in after-hours trading, compounding an 11% decline for the year [5] Future Outlook - The company has lowered its full-year earnings guidance to a range of $14.58 to $14.78 per share, down from previous estimates [4] - CEO Calvin McDonald indicated that the company will leverage its financial position to navigate the challenging macroenvironment [6] - CFO Meghan Frank mentioned plans for strategic price increases and evaluating sourcing options to mitigate tariff impacts [7]