Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Senate Republicans look to sweeten Medicaid pot to...
Judicial nominee shuts down ‘wildly inaccurate’ claims that...
Jill Biden’s ‘work husband’ runs for cover as...
Mossad chief thanks US for help with Iran,...
Who is Anthony Bernal?: The ‘indispensable’ Biden aide...
Senate GOP eyes Medicaid sweetener to save Trump’s...
WATCH: Republicans share views on gay marriage decade...
Hegseth tears into reporters, alleging they ‘cheer against...
Trump’s ‘big, beautiful bill’ faces setback as Senate...
Mossad chief thanks US for help with Iran,...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Business

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

by admin March 29, 2025
March 29, 2025
Lululemon shares drop 15% as CEO says inflation, economic concerns are weighing on spending

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

previous post
HHS axes more than $300M in gender, DEI-related health grants to California alone
next post
Robinhood CEO sees Amazon-like subscription model as path to ‘loyalty’ in financial services

You may also like

JPMorgan Chase CEO Jamie Dimon on Trump tariffs: ‘Get...

January 23, 2025

Capital One and Discover merger approved by Federal...

April 19, 2025

Applebee’s owner Dine Brands to lean on value,...

March 8, 2025

CrowdStrike losses may be biggest test yet of...

July 25, 2024

Rush orders, cut costs, crossed fingers: How small...

December 2, 2024

Temu slashes U.S. ad spending, plummets in App...

April 17, 2025

Chipotle to launch Adobo Ranch dip after sluggish...

June 11, 2025

Nvidia’s CEO did a Q&A with analysts. What...

March 27, 2025

Elon Musk’s politics are hurting Tesla, 85% say...

March 13, 2025

Boeing delivered 30 airplanes in December, but gap...

January 15, 2025

Recent Posts

  • Senate Republicans look to sweeten Medicaid pot to silence dissent on Trump’s ‘big, beautiful bill’
  • Judicial nominee shuts down ‘wildly inaccurate’ claims that he’s Trump’s ‘henchman’
  • Jill Biden’s ‘work husband’ runs for cover as privilege protection crumbles
  • Mossad chief thanks US for help with Iran, says ‘mission is not yet complete’
  • Who is Anthony Bernal?: The ‘indispensable’ Biden aide ditching House Oversight probe on his mental decline

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (800)
    • Investing (2,397)
    • Politics (2,980)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.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 © 2024 Sightful Invest. All Rights Reserved.