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Lululemon Repriced as U.S. Sales Cool and Tariff Costs Squeeze Margins

The stock’s slide underscores concern that international gains will not fully counter weaker Americas demand.

Overview

  • Comparable sales in the Americas fell 4% in the latest quarter, signaling a slowdown in the company’s largest market.
  • New U.S. tariff rules and higher import costs are pressuring the supply chain and compressing profitability.
  • International revenue rose 22% in fiscal Q2 2025, but North America still accounted for about 75% of sales in fiscal 2024.
  • Shares are down roughly 52% year to date and the stock now trades near 11.5 times earnings, its lowest multiple in more than a decade outside the Great Recession.
  • Over the past five years, revenue more than doubled and EPS more than tripled, yet investor sentiment has turned sharply negative.