Shares of the Vancouver-based athleisure retailer fell about 14 per cent on Friday after the company reported sales guidance of US$11.15 billion to US$11.3 billion for the 2025 fiscal year, below analyst estimates compiled by Visible Alpha. It also reported US$3.6 billion in revenue in the fourth quarter of 2024, beating estimates. (The Logic)

Talking point: Chief financial officer Meghan Frank told shareholders Lululemon’s expected gross margin for 2025 would drop 60 basis points compared to this year, due to currency exchange and tariff costs—specifically on China and Mexico. The yoga-wear company is paring back store labour, travel and incentive compensation to manage the costs, Frank added. Though Lululemon is a Canadian company, nearly 90 per cent of products are reportedly made in Vietnam, Sri Lanka, Cambodia and Indonesia, all of which haven’t been hit by tariffs from the U.S. yet. The U.S., once a bright spot for the company, has experienced slower growth in the past few months.