Lululemon lovers are already stretching their wallets to the restrict — and now they’ve had sufficient.
Followers and critics alike had been clucking their tongues Friday after the athleisure big warned prospects they’d quickly be paying much more for already-pricey exercise gear — following a whopping inventory nosedive.
The offender? President Donald Trump’s tariffs — and, apparently, broke Individuals tightening their purse strings.
“We skilled decrease retailer visitors within the Americas, partially reflective of financial uncertainty, inflationary pressures, decrease client confidence, and modifications in discretionary spending,” the corporate stated in a current assertion.
Translation: Even the model’s cult-following of millennial and Gen Z yoga bunnies aren’t splurging $128 on leggings like they used to.
Execs are scrambling because the one-time Wall Avenue darling fell wanting analyst predictions, seeing only a 1% improve in gross sales year-over-year, falling wanting the three% forecast.
“We’re planning to take strategic worth will increase … on a small portion of our assortment, and they are going to be modest in nature,” chief monetary officer Meghan Frank stated on an earnings name, including the hikes will roll out inside weeks.
“Will probably be worth will increase on a small portion of our assortments, and they are going to be modest in nature,” she claimed.
CEO Calvin McDonald admitted he was “not completely satisfied” with U.S. progress figures and blamed the belt-tightening on skittish consumers.
“We skilled decrease retailer visitors … decrease client confidence,” he echoed.
Whereas some could level to floundering new traces just like the Glow Up assortment or Daydrift trousers, the corporate is pinning the blame on tariffs — notably these slapped on items made in Vietnam and China, the place the corporate sources most of its materials.
In 2024, 40% of Lululemon’s merchandise had been made in Vietnam, and 28% of its materials got here from mainland China — each hit exhausting by Trump’s commerce crackdown.
Now, Lulu says it’s working to chop prices and negotiate with distributors to offset the tariff hit. However prospects aren’t precisely downward dogging in assist.
On X, disgruntled customers lashed out on the model’s pricing and manufacturing choices.
“You higher get it collectively. Lulu. Utilizing tariffs as an excuse in your remainder of the 12 months outlook shouldn’t be a sensible transfer. Amazon/Walmart tried this it didn’t go properly. You’re Down 65$ in the present day. Our household was a giant lulu fan not a lot anymore,” one raged.
“For what they cost for his or her merchandise, you’d suppose it was made in America,” snapped one other.
“It will probably’t be that yoga pants shouldn’t value $125 a pair. No. That’s not it,” somebody joked.
Others had been extra blunt: “Their stuff is ridiculously overpriced… whole ripoff.”
“Lululemon’s collapse isn’t about tariffs — it’s about betting on international manufacturing whereas ignoring American resilience,” one critic seethed.
They continued, “Relocating manufacturing… was at all times of venture, and now they’re paying for it.”
Some merely slammed your entire model: “Lululemon clothes is so overpriced — at all times has been. Solely the Gen Zers suppose its the identify on them that make them particular.”
One other scorched: “Silly wealthy ladies paying exorbitant costs for stretch pants. SMH.”
Regardless of the backlash, Lululemon doesn’t look like sweating simply but — however with prices climbing and prospects stretching their budgets, the longer term won’t be fairly so versatile.
