Lululemon Athletica (LULU) is cutting 150 corporate jobs as its restructures with its share price down nearly 30% in the last month.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
The athletic apparel and sneaker retailer said the impacted employees are part of its store support centers. The move comes as LULU stock reels from U.S. President Donald Trump’s import tariffs that have hurt the company’s supply chains and Asian manufacturing base.
Lululemon’s financial results have also taken a hit in recent quarters from not only tariffs but declining sales in the key market of China. The company has also been impacted as consumers pullback on their discretionary spending amid signs of an economic slowdown in the U.S. and Lululemon’s home market of Canada.
Lowered Expectations
In its most recent financial results, Lululemon said it planned price increases as it deals with the ongoing impacts of U.S. tariffs, passing along its added costs to customers. The Vancouver-based retailer also lowered its profit expectations for this year.
Management at Lululemon said they now expect earnings per share (EPS) of $14.58 to $14.78 for all of 2025, down from previous earnings guidance of $14.95 to $15.15. The lowered guidance has weighed on LULU stock, sending it down 28% in the last month. Year-to-date, Lululemon’s share price has declined 40%.
Is LULU Stock a Buy?
The stock of Lululemon Athletica has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 15 Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average LULU price target of $310.44 implies 34.35% upside from current levels.
