Financial and Market Impact
's shares plunged 20% following its announcement of strategic price increases on a small portion of its products, attributing the decision to tariffs and economic uncertainties.
Despite beating expectations for its fiscal first-quarter earnings, Lululemon cut its full-year earnings guidance, reflecting the tough macroeconomic environment and the impact of Trump's tariffs.
Consumer Reaction and Strategic Adjustments
Customers expressed dissatisfaction on social media, criticizing Lululemon for using tariffs as an excuse for price hikes and for its manufacturing decisions, with some threatening to stop their patronage.
Lululemon is attempting to mitigate tariff impacts by cutting costs, negotiating with vendors, and planning modest price increases, while also navigating a shift in consumer spending patterns.