Lululemon stock price: LULU shares crash over tariff impact fears

Lululemon's stock price is down significantly after its first-quarter earnings report. The company reported a 7% increase in net revenue, reaching $2.37 billion, exceeding Wall Street expectations. Comparable sales increased 1% globally, but decreased 2% in America. Gross profit rose 8% to $1.4 billion, with diluted earnings per share at $2.60. However, the company's Q2 forecast of $2.54-$2.56 billion in revenue fell short of analyst predictions. Lululemon's guidance did not account for potential tariff impacts and macroeconomic trends. Concerns arise as the company manufactures its products in countries facing tariffs. Lululemon plans strategic price increases due to these factors. The company maintained its full-year revenue outlook despite the challenges. Investors are worried about the effects of potential tariffs on sales. The disappointing Q2 forecast and tariff concerns caused Lululemon's shares to drop nearly 20%. The stock has declined by 30% since the beginning of the year.