In premarket trading today, Lululemon stock dropped nearly 13% following the company’s earnings release. The athleisure company anticipated a revenue downturn in 2025 as it navigates an unpredictable consumer demand and a volatile market environment.
Lululemon’s CEO, Calvin McDonald, said Thursday that the company has begun to rethink its offerings due to economic uncertainty, including tariffs. “We started this year with several compelling new product launches, but we also believe the dynamic macro environment has contributed to a more cautious consumer,” he commented.
In the company’s 2024 fiscal earnings release, McDonald informed investors: “Our fourth quarter resultspectations as we continued to introduce more newness and innovation into our product assortment. Our performancelulemon’s ongoing strength and resilience exceeded our ex demonstrates Lu and is a testament to the passion and dedication of our teams around the world.
Lululemon’s revenue for the first quarter of 2025 is projected to increase by as much as 7%, reaching between $2.335 billion and $2.355 billion. The company anticipates its fiscal 2025 net revenue to range from $11.150 billion to $11.300 billion, reflecting a 5% to 7% growth.
Moving forward, McDonald says, “As we begin 2025, we remain focused on executing on our Power of Three ×2 growth plan and delivering an exciting pipeline of innovation and brand activations for our guests and communities.”
The company’s “Power of Three ×2 growth plan” calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026. Lululemon notes the “key pillars of the plan are product innovation, guest experience, and market expansion.”
By CEO NA Editorial Staff
