Lululemon Stock falls 20% as heading trees for the session session star-news.press/wp

Lululemona shares (Lulu-1.05%)were top buttons and “Technical Clothes”, Bili up to 20% Prior to the open market Friday, potentially shaving about $ 8 billion from its market cap.

That is in spite of relatively Powerful quarterly results Published after the closing of Thursday, in which the CEO Calvin McDonald called “Growth through the canals, categories and markets, including the US revenue in the USA increased 7% to 2.4 billion dollars, and growth held in each of each of each Main categories of companiesWomen’s clothing, male clothes and accessories.

The same sales sales of edges 1%, while international sales climbed a healthy 20%, with 21% growth in China, where the three new stores opened. Margins extended as product costs have also sunken prices for rose prices. EPS increased modestly annually during the year.

‘Net influence of tariffs’

All in all, considering that lululemon straps on high-income consumers who are willing to shell $ 125 on a simple dress from atleizure material – Customers who are more immunic on economic belts and arrows than, say, Dollar General’s or Target – It is still a pretty good set of outcomes in this “dynamic macroenvironget”, in the management phrase.

So what is probably a fault behind the sinking part price? The revised guidelines as management expects tariffs to withdraw salary in the second half of the year. Lululemon now provides for a more modest profit in the second half of the year, with the Director General McDonald Speaking of the call“” We found our margin for a full year with 100 basic points, packaged year during the year to 160. years. It is all running net net impact tariffs. “

Clothes sellers particularly affected

MANAGEMENT COMMENTS AND FALL FORECAST FALL IN BY MORGAN STANLEY (MS-1,00%) Research suggesting that clothing retailers will fight to deal with the effects of white houses.

“Companies that primarily sell goods such as clothing, footwear, home textiles and accessories, suppliers may have shared as many as 50% of any incremental tariff truck historically” by the article On the website Morgan Stanley. “But this time, merchants and wholesale brands may need to absorb and more weight.”

Tends to margins, that is,.