• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Lululemon shares drop 15% as CEO says inflation, economic concerns are weighing on spending

by March 28, 2025
written by March 28, 2025

Lululemon beat Wall Street expectations for fiscal fourth-quarter earnings and revenue, but issued 2025 guidance that disappointed analysts.

On an Thursday earnings call, CEO Calvin McDonald said the athleticwear company conducted a survey earlier this month that found that consumers are spending less due to economic and inflation concerns, resulting in lower U.S. traffic at Lululemon and industry peers. However, he said, shoppers responded well to innovation at the company.

“There continues to be considerable uncertainty driven by macro and geopolitical circumstances. That being said, we remain focused on what we can control,” McDonald said.

Shares of the apparel company plunged 15% on Friday morning.

Lululemon was only the latest retailer to say it expects slower sales for the rest of this year as concerns grow about a weakening economy and President Donald Trump’s tariffs. Even so, the Canada-based company said it expected only a minimal hit to profits from the U.S. trade war with countries including Canada, Mexico and China.

Here’s how the company did compared with what Wall Street was expecting for the quarter ended Feb. 2, based on a survey of analysts by LSEG:

Fourth-quarter revenue rose from $3.21 billion during the same period in 2023. Full-year 2024 revenue came in at $10.59 billion, up from $9.62 billion in 2023.

Lululemon’s fiscal 2024 contained 53 weeks, one week longer than its fiscal 2023. Excluding the 53rd week, fourth-quarter and full-year revenue both rose 8% year over year for 2024.

Lululemon expects first-quarter revenue to total $2.34 billion to $2.36 billion, while Wall Street analysts were expecting $2.39 billion, according to LSEG. The retailer anticipates it will post full-year fiscal 2025 revenue of $11.15 billion to $11.30 billion, compared to the analyst consensus estimate of $11.31 billion.

For the first quarter, the company expects to post earnings per share in the range of $2.53 to $2.58, missing Wall Street’s expectation of $2.72, according to LSEG. Full-year earnings per share guidance came in at $14.95 to $15.15 per share, while analysts anticipated $15.31.

CFO Meghan Frank said on the Thursday earnings call that gross margin for 2025 is expected to fall 0.6 percentage points due to higher fixed costs, foreign exchange rates and U.S. tariffs on China and Mexico.

Lululemon reported a net income for the fourth quarter of $748 million, or $6.14 per share, compared with a net income of $669 million, or $5.29 per share, during the fourth quarter of 2023.

Comparable sales, which Lululemon defines as revenue from e-commerce and stores open at least 12 months, rose 3% year over year for the quarter. The comparison excludes the 53rd week of the 2024 fiscal year. Analysts expected the metric to rise 5.1%.

Comparable sales in the Americas were flat, while they grew 20% internationally. Lululemon has been facing a sales slowdown in the U.S., although McDonald said its U.S. business stabilized in the second half of the year and partially attributed the improvement to new merchandise. He added that Lululemon will expand its stores to Italy, Denmark, Belgium, Turkey and the Czech Republic this year.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Trump doubles down on acquiring Greenland for ‘world peace’ amid Vance visit
next post
Trump cautions ‘bad things’ in store if Iran won’t negotiate as Islamic Republic touts ‘Missile City’

related articles

Union Pacific to buy Norfolk in $85 billion...

July 29, 2025

Things are getting better at Boeing under CEO...

July 29, 2025

Elon Musk confirms Tesla has signed a $16.5...

July 28, 2025

Palantir joins list of 20 most valuable U.S....

July 26, 2025

FCC greenlights Paramount’s $8 billion merger with entertainment...

July 25, 2025

Microsoft’s Satya Nadella says job cuts have been...

July 25, 2025

Alphabet beats earnings expectations, raises spending forecast

July 24, 2025

UnitedHealth says it faces DOJ investigation over Medicare...

July 24, 2025

Uber will let women drivers and riders request...

July 24, 2025

UnitedHealth says it is facing DOJ investigation over...

July 24, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Nissan to cut 9,000 jobs, slash profit forecast by 70% amid tough market conditions

    November 7, 2024
  • Reporter’s Notebook: Following President Biden on his ‘global finale’ to Africa

    December 7, 2024
  • FDA declares cucumber-linked Salmonella outbreak over after 155 hospitalized

    August 26, 2024
  • Comcast to announce the spinoff of cable networks, including MSNBC, CNBC and USA, sources say

    November 20, 2024
  • Home Depot is buying GMS for about $4.3 billion as retailer chases more home pros

    June 30, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,553)
  • Investing (634)
  • Stock (862)

Latest Posts

  • Trump can delete Elizabeth Warren’s failed experiment once and for all

    February 5, 2025
  • Trump admin ends waiver allowing Iraq to buy Iranian electricity as part of ‘maximum pressure’ campaign

    March 10, 2025
  • Trump camp says Harris-Walz ‘dangerously liberal’ ticket is ‘every American’s nightmare’

    August 6, 2024

Recent Posts

  • Obama-appointed judge who became Trump rival during election interference case overseeing pivotal DOGE hearing

    February 18, 2025
  • Kamala Harris’ campaign criticizes Trump for serving ‘self-obsessed rich guys’ after interview with Elon Musk

    August 13, 2024
  • Amazon Stock Outlook: Resistance at $186; Eyes $20B+ Savings

    October 10, 2024

Editor’s Pick

  • Dem senator ripped for invoking Hegseth’s young daughter in ‘despicable’ confirmation hearing exchange

    January 14, 2025
  • Sen. Josh Hawley ‘delighted’ to back Sen. John Cornyn for Senate Majority Leader

    November 9, 2024
  • Nifty under heavy pressure: German 40 steady on Tuesday

    August 13, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock