LululeMon beats on Q1 2025 profits, Outlook discounts

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Lulhemon Wall Street’s expectations for the first quarter profits of the first quarter on Thursday, but reduced the instructions of the entire year’s profits, noting the “dynamic total environment”.

While the company is moving on the customs tariffs and concerns about the slowdown in the American economy, CEO Calvin McDonald said in a press statement, “We intend to take advantage of our strong financial situation and competitive advantages to play the attack, while we continue to invest in growth opportunities in front of us.”

He said in a phone call with analysts that he was “unhappy” with growth to us and said that American consumers were cautious and intentional about their purchase decisions.

Financial Director Megan Frank added to the call that the brand plans to take “increases in strategic prices, and is looking for the element through the item through our formation”, to alleviate the impact of definitions.

“The price increases will be on a small part of our formation, and it will be modest in nature,” she said, adding that these increases will start in the second half of the current quarter and in the third quarter.

The shares of the clothing company decreased by about 23 % in extended trading.

Here is what the company did in the first quarter compared to what Wall Street expected for the quarter ending on May 4, based on a survey of analysts by LSEG:

• Arrow profits: $ 2.60 for $ 2.58 expected
• profit: $ 2.37 billion for $ 2.36 billion expected

The company reduced the entire year profit instructions. Its profits for the entire year are expected to range from $ 14.58 to $ 14.78. Previously, I expected the profits of the entire year to range from the share in the range of $ 14.95 to $ 15.15 for this year. Analysts expect $ 14.89, according to LSEG.

The LululeMon report comes after a series of retailers reduced or withdrew their guidelines and said they would do High prices Because of the uncertainty surrounding the president Donald TrumpCustoms tariff system. Retail traders including Abercrombie & Fitch and Messi They reduced their profit expectations, while others, including American eagle traders The entire year’s instructions were withdrawn completely.

Among the rivals of LululeMon in the category of sportswear specifically, GAP, which has athleisure Brand Athleta, I mentioned Last week, she expects the definitions of its work to affect $ 100 million to 150 million dollars. Nike told CNBC last month that it would start Price up On a wide range of products, although they did not specify whether the definitions are the cause of height.

In the profit call on Thursday, McDonald admitted that the definitions brought by business brought, but said he believed the brand was “better than most” to move in the current environment.

LululeMon reported a net income for the first quarter of money amounting to $ 314 million, or $ 2.60 per share, compared to a net income of $ 321 million, or $ 2.54 per share, a year ago.

The revenues of the first quarter increased to $ 2.37 billion, up from about $ 2.21 billion during the same period in 2024.

LululeMon expects the second -quarter revenues to reach 2.54 billion dollars and $ 2.56 billion. It is also expected that the revenues of 2025 for the full year will range from $ 11.15 billion to $ 11.3 billion-without changing from its latest expectations. The Wall Street analysts expected revenues of $ 2.56 billion for the second quarter and $ 11.24 billion for the full year, according to LSEG.

Activewear expects to make profits per share in the range of $ 2.85 to $ 2.90 for the second quarter, compared to Wall Street expectations of $ 3.29, according to LSEG.

Frank said in calling profits that the company’s expectations assume the current additional tariff by 30 % on China and a 10 % tax on the remaining countries where the sources of retail stores are.

During the year 2024, 40 % of LululeMon products were manufactured in Vietnam, 17 % in Cambodia, 11 % in Sri Lanka, 11 % in Indonesia, 7 % in Bangladesh and the rest in other regions, according to the company. The annual report. LululeMon does not have any manufacturing facilities and depends on suppliers to produce and provide fabrics for their products, according to the report.

Similar sales increased by 1 % year on a quarter of a quarter, compared to 3 % of Wall Street, according to Streetaccount. This number includes a 2 % decrease in the Americas and an increase of 6 % internationally.

The total margin was 58.3 %, 57.7 % expected by analysts, according to Streetaccount.

However, Frank said in the profit invitation that LululeMon expects the total overalls for the entire year to decrease about 110 basis points against 2024, decreasing from its previous directives from the decrease in the 60 Basis point. She said that the teams are often driven by increased definitions.

As of Thursday, the Lulu shares decreased about 13 % on an annual basis.