Lululemon shares plunge 20% as it slashes earnings outlook, projects $240 million tariff hit
Lululemon’s shares fell 20% after a disappointing full-year outlook, primarily due to rising tariffs impacting profit margins. Although the company surpassed Q2 earnings expectations, it warned of reduced annual profits and lower revenue projections. CEO McDonald acknowledged challenges in product strategy and emphasized the need for innovative offerings to regain consumer interest.