Lululemon stock plunges in historic rout as tariffs eat away at its profit

By Jordan Valinsky, CNN

Lululemon’s stock is on pace for one of its biggest routs in history after the athleisure maker warned that tariffs will dent its profit.

The company cut its full-year guidance citing a “dynamic macroenvironment” that includes a decline in visits to its US stores, the impact of tariffs and and rising competition from other brands, such as Vuori and Alo.

Lululemon ( LULU ) shares plunged more than 17% Friday, on pace for the stock’s worst day in more than five years and its fourth-worst day ever.

“The current tariff paradigm has brought uncertainty into the retail environment,” said CEO Calvin McDonald on a call with analysts Thursday, adding that Lululemon is “definitely not happy where the growth is in the US.”

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