Lululemon shares plunge as Trump tariffs bite
News Mania Desk / Piyal Chatterjee / 6th June 2025
Lululemon’s stock has dropped over 20% after lowering its yearly profit outlook, as the company deals with tariffs and concerns regarding a slowdown in the US economy.
“We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,” Lululemon said in a statement .
The athleisure brand joins a growing list of big companies to warn about the impact of US President Donald Trump’s trade policies.
The Trump administration’s approach to tariffs has triggered concerns over rising prices and a weakening economy. “We are planning to take strategic price increases… on a small portion of our assortment, and they will be modest in nature,” Lululemon’s finance chief Meghan Frank said.
The firm also stated it will reduce expenses and discuss terms with its suppliers. In the previous year, 40% of its products were produced in Vietnam, while 28% of its fabrics were sourced from mainland China.
Apparel and shoe brands are some of the industries most adversely affected by tariffs since they produce products in Asian nations, which have encountered high taxes from the US. In April, sportswear leader Adidas cautioned that tariffs imposed by Trump will result in prices in the US for popular shoes like the Gazelle and Samba.
“Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market,” chief executive Bjorn Gulden said. “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success,” Skechers’ chief operating officer, David Weinberg, told investors in a post-earnings call.
Nike announced last month that starting in early June, it would increase prices on certain trainers and apparel in the US. The sportswear leader did not specifically mention US tariffs as a cause for the rise, stating it frequently implemented “price adjustments.”
