Lululemon Beats on earnings Q1 2025, reduce perspective

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Lulhemon On Thursday, it won the expectations for Wall Street from financial profit in the first quarter, but reduce your grips in a year, citing a “dynamic macro.”

As the company moves tariffs and is afraid of a delayed American economy, CEO Kalvin McDonald said in a report that “we intend to use our strong financial position and competitive advantages that we need to play while we continue to invest in the growth opportunities.”

He stated that at a conference call with analysts that he was “not happy” with the US growth and said that US consumers are cautious and intentionally treated with their purchase decisions.

Megan Frank Chief Financial Director added on the call that the brand plans to take a “strategic price increase by looking for a product on our range” to mitigate the tariff effect.

“It will rise in prices on a small part of our range, and they will be modest,” she said, adding that these hikes will start to unfold to the second half of the current quarter and in the third quarter.

The shares of the clothing campaign plunged about 23% in advanced trade.

Here’s how the company did for its first quarter compared to what Wall -Ratt for a quarter, which ended on May 4, on the basis of a LSEG analyst poll:

• Income per share: 2.60 dollar against $ 2.58 expected
• Income: 2.37 billion dollars vs. $ 2.36 billion expected

The company has reduced its full years of income management. He believes that his suits for a full year will be from $ 14.58 to $ 14.78. He previously expected that the profit for the full year would be from $ 14.95 to $ 15.15 a year. Analysts were waiting for a $ 14.89 stock profit, Lseg reports.

The Lululemon Report comes after a string of retail sellers cut or withdraw their recommendations and said it would be Prices for hike Out -with the uncertainty associated with the president Donald TrumpTariffs mode. Retailers, including Abercrombie & Fitch and Messi reduced their income and others, including American Eagle Outfitters Generally, he pulled his full years.

Among the Lululemon competitors in the category of sportswear, in particular Gap owned by Athleisure Brand Athleta, report Last week, he expects tariffs to affect his business by $ 100 million to $ 150 million. Nike said CNBC last month that will start Increasing prices On a wide range of products, although this did not specify whether the tariffs were the cause of the hike.

On Thursday, McDonald’s revenue calls acknowledged the uncertainty what tariffs brought in the business, but stated that he believed that the brand is “better located than most” for navigation under current conditions.

Lululemon reported a net income for the first quarter of $ 314 million, or $ 2.60 per share, compared to net income of $ 321 million, or $ 2.54 per share a year earlier.

Revenue in the first quarter rose to $ 2.37 billion, which is approximately $ 2.21 billion over the same period in 2024.

Lululemon expects that the revenue in the second quarter will be from $ 2.54 to $ 2.56 billion. He also believes that the revenues for 2025 will be from $ 11.15 to $ 11.3 billion in the last year from the last forecast. Analysts for Wall -Rate expected $ 2.56 billion in the second quarter and $ 11.24 billion for the whole year, LSEG reports.

Activewear expects to accommodate profits per share from $ 2.85 to $ 2.90 per second quarter, compared to Wall -Rate $ 3.29, LSEG reports.

Frank said the income is called that the company’s forecast suggests that the current 30% is a gradual tariff in China and a gradual 10% collection in other countries from which the source of retail.

During 2024, 40% of Lululemon products were manufactured in Vietnam, 17% in Cambodia, 11% in Sri Lanka, 11% in Indonesia, 7% in Bangladesh, and the rest in other regions, according to the company, Annual report. Lululemon does not possess and does not manage production facilities and relies on suppliers for the production and provision of fabrics for their products, the report said.

Comparative sales increased by 1% a year per quarter, compared to 3% Wall -Restitis, streets. This number includes a 2% decrease in America and 6% internationally increased.

The gross profitability was 58.3%, ahead of 57.7%, which analysts expected, reports Sheetarccount.

However, Frank said he called that Lululemon expected that the gross profitability would decrease by about 110 basic points compared to 2024, which compared to the previous indication at 60 bass points. She said the difference was due mainly to the increase in tariffs.

As of the closing of Thursday, Lulu shares declined about 13% due to the year.