Lululemon warns of $310m hit from US tariff woes

Lululemon Athletica slashed its outlook, disappointing investors for a third straight quarter as it struggles to meet high expectations and balance tariff expenses in a difficult consumer environment.

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NEW YORK -

The Vancouver-based company warned on Sept 4 that it will take a US$240 million (S$310 million) hit from US President Donald Trump's decision to end the de minimis exemption. The policy helped Lululemon ship many of its US e-commerce orders under US$800 duty-free from Canada.

The retailer slashed its outlook, projecting sales in the range of US$2.47 billion to US$2.5 billion for the third quarter, lower than what Wall Street anticipated. For the full year, Lululemon lowered both its revenue and earnings per share outlook.

Comparable sales for the second quarter grew 1 per cent, missing Wall Street's expectation of almost 3 per cent expansion. The company's shares fell 16 per cent in post-market trading on Sept 4.