Overview

• Lululemon is eliminating about 150 corporate positions to streamline its organizational structure and enhance operational agility
• New U.S. import duties on apparel have squeezed profit margins and complicated the company’s efforts to diversify its manufacturing base
• The retailer lowered its full-year diluted earnings-per-share outlook to $14.58–$14.78 from $14.95–$15.15 amid rising cost pressures
• Modest price hikes on select products will shift some of the additional tariff costs onto consumers
• Robust demand in international markets, especially China, is helping offset softer U.S. store traffic