Lululemon’s trademark leggings and yoga wear could – Business News
The price of Lululemon’s fashionable leggings and yoga wear could quickly soar by more than 10% as a result of of President Donald Trump’s sweeping reciprocal tariffs, based on industry consultants.
The high-end athleisure model is “in the tariffs bullseye” – with the majority of its manufacturing sourced from nations that have been among the many hardest hit laborious, William Blair analyst Sharon Zackfia wrote in a observe to purchasers.
Lululemon has stated 40% of its merchandise are made in Vietnam – which the US plans to hit with a 46% tariff.
Another 46% of Lululemon’s clothes are produced in Cambodia, Sri Lanka, Indonesia and Bangladesh, which face tariffs between 32% and 49%.
Shoppers could finish up paying 11% to 12% more for Lululemon attire, based on William Blair analyst Sharon Zackfia. Getty Images
If the levies go into impact as deliberate on Wednesday, the model’s devoted buyers could count on to pay 11% to 12% more if the retailer decides to go alongside extra prices from the new taxes, Zackfia stated.
That means Lululemon’s trademark $118 legging could spike to as high as $132,
More than 60% of Lululemon gross sales got here from the US in 2024 – and now the firm is dealing with a blended tariff charge of 39%, Zackfia stated within the observe.
But Zackfia stated she expects any price will increase from Lululemon “will likely be more surgical than an across-the-board hike.”
Lululemon didn’t reply to The Post’s request for remark.
During its most up-to-date earnings call, the retailer’s chief financial officer, Meghan Frank, stated Lululemon shall be “keeping a close eye” on the likelihood of broader tariffs.
The company final hiked costs by 10% in 2022.
Lululemon – identified for its trademark $98 leggings and pricey athletic gear – is set to get hit from all angles by Trump’s tariffs. Getty Images
When the retailer confronted added prices during a provide chain disaster in 2021 and 2022, it “took a more cautious approach” to raising costs than industry rivals, the analyst famous.
Lululemon shares rose 2.8% by Friday afternoon, after Trump stated he had a “very productive call” with Vietnam, signaling the tariffs could be negotiated decrease quickly.
Along with Lululemon, a number of different manufacturers together with Nike, Apple Coach and Abercrombie & Fitch could quickly spike costs as a result of of their provide chains are tied to Asia.
