Lululemon Adjusts Outlook Due to U.S. Market Hiccups and Tariff Challenges

Lululemon is in a shadow. The Canadian company closed the second quarter with a drop in net income and stagnating sales in the United States, its main market. With this performance, the company has lowered its forecasts for the year as a whole, also taking into account the impact of tariffs and the end of de minimis.

The sports equipment group, which in recent years has recorded a strong rise while established rivals such as Nike and Adidas have suffered, ended the second quarter (ended August 3) with a 6.49% increase in sales, up to 2.525 billion dollars. For the first half of the year, sales rose 6.9% to 4.895 billion dollars.

By markets, in the United States the group’s sales stagnated, while in Canada they grew by only 1%. In China, on the other hand, the company increased its growth by 25%, and in the rest of the world by 19%. In the Americas, like-for-like sales declined by 4%.

“While we continued to see overall positive momentum in our international regions in the second quarter, we were disappointed with the performance of our U.S. business and some aspects of our product execution,“ admitted Calvin McDonald, CEO of Lululemon.

Lululemon ended the second quarter with flat sales in the United States.

“We have carefully evaluated the factors behind our underperformance and continue to take the necessary steps to strengthen our product range and accelerate our business - he detailed -; we are confident in the opportunities ahead and the plans we have put in place to drive long-term growth.“

The company’s gross profit for the second quarter rose by 4.6% to 1.477 billion dollars, while for the first six months of the year it rose by 6.44% to 2.86 billion dollars.

Lululemon, on the other hand, closed the first quarter and the first half of the year with a drop in its net income. The company earned 370 million dollars in the second quarter, a drop of 5.61%, while for the first half of the year as a whole the fall was 4.06%, to 685 million dollars.

As a result of these developments, the company has lowered its annual forecasts. For the year as a whole, Lululemon now projects sales of between $10.85 billion and $11 billion.

“Forecasts for 2025 include an estimated reduction in gross profit of approximately $240 million, net of currently planned mitigation measures, including supplier savings and pricing measures, reflecting our current forecasts for the year,“ said Lululemon.This reflects our current assumptions regarding increased tariffs on U.S. imports and the elimination of the de minimis exemption ,“ the company said.