Lululemon Shares Plunge As Trump Tariffs Bite

Lululemon shares plunged more than 20% after the company cut its annual profit forecast, citing the impact of tariffs and concerns about a slowing U.S. economy, Peter Hoskins reported for BBC News.

Lululemon joins a growing list of major companies warning of the fallout from President Donald Trump’s trade policies. I Photo: The Mall at Millenia

“We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,” the athleisure brand said in a statement.

Lululemon joins a growing list of major companies warning of the fallout from President Donald Trump’s trade policies.

The administration’s tariff-heavy approach has triggered concerns about rising prices and a weakening economic outlook.

“We are planning to take strategic price increases... on a small portion of our assortment, and they will be modest in nature,” said Meghan Frank, the company’s chief financial officer. Lululemon also announced plans to cut costs and renegotiate with vendors.

Last year, 40% of its products were made in Vietnam, and 28% of its fabrics were sourced from mainland China. Clothing and footwear brands have been among the hardest hit by U.S. tariffs, as many manufacture goods in Asian countries facing steep levies.