Lululemon shares tumble after company issues disappointing guidance, says tariffs will weigh on profits
Lululemon shares plummeted 19% in the premarket Friday after the athletic apparel retailer slashed its full-year guidance.
The company expects its earnings for the period to come in between $12.77 and $12.97 per share, down from its prior guidance of between $14.58 and $14.78 per share and far below the $14.45 per share that analysts surveyed by LSEG were expecting.
It also expects revenue for the full year to be between $10.85 billion and $11 billion. That’s also down from its prior guidance of between $11.15 billion and $11.30 billion and below the consensus estimate of $11.18 billion.
Additionally, the company said it anticipated that both higher tariffs on goods coming into the U.S. and the removal of the de minimis exemption will hit its full-year profits by about $240 million.
Chief Financial Officer Meghan Frank said in a statement that the company is “navigating industry-wide challenges, including higher tariff rates.”
Meanwhile, for the second quarter, the company surpassed earnings expectations but just missed revenue estimates.
LULU, 1-day
Tesla rises after filing details award plan for Elon Musk
Tesla shares rose 2% in the premarket after the electric vehicle maker filed a preliminary proxy detailing a lofty incentive plan for CEO Elon Musk.
“In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award,” the proxy said. “In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis, and extensive shareholder feedback.”
The plan would also expand Musk’s voting power within the company.
“Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensured that Elon was only paid for performance delivered and incentivized to guide Tesla through a period of meteoric growth,” it said.
— Fred Imbert
Expect long-dated bond yields to trend higher, Nordea says
The 30-year U.S. bond yield briefly ticked above 5% this week. Nordea thinks there may be more upside in longer-dated debt.
“It could of course be that investors are particularly hesitant at committing cash for that long. This could also be related to the risk of central bank independence. … If Trump were to get his will with large rate cuts or even QE, it could very well last for a few years,” the bank said in a post.
— Fred Imbert
Broadcom stock rises after strong earnings and upbeat outlook
Shares of Broadcom advanced more than 4% in after hours trading on Thursday, following the semiconductor company’s better-than-expected third-quarter results and rosy outlook.
Broadcom reported adjusted earnings per share of $1.69 and revenue of $15.59 billion. Analysts polled by LSEG were looking for a profit of $1.65 per share and revenue of $15.83 billion.
Broadcom also said it expects revenue in the current quarter of $17.4 billion, while analysts had penciled on $17.02 billion.
— Brian Evans
Stocks making the biggest moves after hours
Check out the companies making headlines in extended trading.
Lululemon — Shares in the athleisure company plummeted more than 13% after fiscal second-quarter revenue missed analyst estimates due to a slowdown at its U.S. business. Revenue of $2.53 billion, was short the $2.54 billion predicted by analysts polled by LSEG. Lululemon also cut its outlook for the year, saying tariffs will hurt profits.
DocuSign — Stock in the software company rose roughly 5% after better-than-expected second-quarter results. DocuSign reported adjusted earnings per share of 92 cents on revenue of $801 million, while analysts polled by LSEG were looking for a profit of 84 cents per share and revenue of $780 million. The firm also issued a better-than-expected third-quarter and full-year outlook.
Amneal Pharmaceuticals — Stock in the pharmaceutical company climbed more than 2% after Amneal received U.S. Food and Drug Administration approval for its risperidone extended-release drug, which is a treatment for bipolar I disorder and schizophrenia in adults.
— Brian Evans
Stock futures are little changed
Stock futures were little changed Thursday as investors prepare for a key nonfarm payrolls report on Friday morning.
Futures tied to the Dow Jones Industrial Average and the S&P 500 were both virtually flat. Nasdaq 100 futures gained 0.1%.
— Brian Evans
