Group 1 - Best Buy Co., Inc. has appointed Meghan Frank to its Board of Directors, effective immediately [1] - Meghan Frank is currently the Chief Financial Officer of lululemon, overseeing various financial operations since November 2020 [1] - Her responsibilities include finance, tax, treasury, investor relations, asset protection, facilities, planning and allocations, and strategy [1]

Core Viewpoint - Lululemon is facing significant challenges due to rising costs from U.S. tariff policies, which are negatively impacting its financial outlook and competitive position in the market [1][2][6]. Financial Performance - In Q2, Lululemon's revenue grew by 7% year over year, primarily driven by new store openings and international market success, while comparable sales in the Americas decreased by 4% [4]. - The company's gross margin fell by 1.1 percentage points to 58.5%, and earnings per share (EPS) experienced a slight decline [4]. Outlook and Guidance - Lululemon has revised its 2025 revenue growth outlook to 2% to 4%, down from a previous estimate of 5% to 7%, with EPS now expected to be between $12.77 and $12.97, compared to earlier guidance of $14.58 to $14.78 [5]. - The company anticipates that tariffs and the removal of the de minimis exception will reduce its gross profit by approximately $240 million for the full year [8]. Tariff Impact - Most of Lululemon's products are sourced from countries with tariff rates exceeding the previous 10% baseline, with products from Vietnam now facing a 20% tariff [6]. - The removal of the de minimis exception is expected to significantly increase order fulfillment costs, as many e-commerce orders previously qualified for this exemption [7]. Market Position and Valuation - Lululemon's stock has declined 56% year to date, with a current valuation of just over $20 billion, making it less than twice the company's outlook for full-year sales [10]. - The stock is considered to be at its lowest valuation since the financial crisis over 15 years ago, presenting a potential opportunity for patient investors [10]. Future Prospects - Despite current pressures, Lululemon's strong brand and plans to refresh its product lines could lead to improved growth in the future [11]. - The ongoing impact of tariffs and economic conditions will pose challenges, but there may be investment opportunities at the current low stock price for those willing to wait [11].

Core Viewpoint - Lululemon athletica's stock is experiencing a significant decline, nearing long-term lows, with potential for a rebound but facing substantial market headwinds [1][2][3] Financial Performance - Lululemon reported a revenue growth of 6.8% but faced weakness in the U.S. segment and reduced guidance for Q3 and the full year, lowering growth expectations to about 5% on a comparable basis [11][12] - The company anticipates that tariffs and the end of de minimis shipping will impact its earnings outlook by 1200 basis points [12] Market Sentiment - The consensus among 29 analysts is a Moderate Buy, but the price target has decreased by over 40% in the last year, indicating a bearish sentiment [4][5] - Institutional investors, who own about 85% of the stock, have shifted from buying to selling, presenting a significant headwind for the stock's price action [6][8] Technical Analysis - The stock has fallen below a critical long-term support target, with projections indicating a potential decline to the $126 to $80 range by early 2026 [9][10] - The market sentiment is expected to remain negative until there is a positive shift in company news, which may not occur until Q3 or Q4 releases [8] Competitive Landscape - There are concerns about whether Lululemon can maintain its market position amidst competition, particularly from brands like On Holdings [12]