Markets
Lululemon Store in Shanghai
Lululemon flagship store in Shanghai, China (CFOTO/Getty Images)

Lululemon on pace for worst day in a year; BofA walks back its price target after earnings

Lululemon is losing market share as newer rivals hit the athleisure market.

Nia Warfield

Shares of Lululemon slid 15.2% on Friday, on pace for their worst day in a year, as investors and analysts soured on the company’s latest earnings report and guidance.

In response, Bank of America analyst Lorraine Hutchinson lowered her 2026 earnings per share forecast for the company to $15.15 from $15.43 and slashed the stock’s price target to $400 from $480 (a 17% cut). Hutchinson pointed to margin pressure as a key factor for the revision, mostly stemming from China/Mexico tariffs and FX impacts. Despite reporting a Q4 earnings beat this week, Lululemon is grappling with slowing demand as popular newcomers like Alo and Vuori capture key customers.

Still, Bank of America maintained its “buy” rating on the stock, noting that even with traffic falling, newer designs and collections like Glow Up, Daydrift, and BeCalm have been getting strong feedback from customers. That could give Lululemon the boost it needs for North American sales once traffic stabilizes.

“In contrast to peers, LULU hasn’t embedded improving US trends for the rest of the year. If this consumer soft patch proves to be short-lived, we expect better product and activations to drive sales upside,” Hutchinson said in her note.

The last time the stock dropped more than it is today was March 22, 2024, when it fell 15.8%. Lululemon shares are down more than 25% over the past year.

More Markets

See all Markets
Tasha Matsumoto, Luke Kawa
2h
Stocks hammered by tariff turmoil

A Truth Social post from President Trump threatening a “massive increase” on tariffs sent stocks into their steepest drop-off since April.

Bear Roar
J. Edward Moreno
5h
Lilly Endowment unloads about $600 million in Eli Lilly stock during early October

The nonprofit still owns about 10% of the company, a stake now worth about $80.9 billion.

Pharmaceutical Company Eli Lilly Headquarters
Max Knoblauch

Global automakers sink as Trump implies the trade war is heating back up

Shares of several major automakers with large footprints in China sank on Friday following President Trump’s threats to massively increase tariffs on goods from China in response to what he called “hostile” export controls.

Chinese EV titans like BYD, Nio, and XPeng plunged after Trump’s Truth Social post, along with automakers like Tesla and Stellantis that heavily rely on revenue from sales in the country.

EV makers like Rivian and Lucid, which source raw materials and or batteries from China, were also down following the post.

The move comes at a rocky time for US automakers, with the end of the EV tax credit expected to heavily ding sales for the rest of the year.

markets
Matt Phillips

Rare earth stocks spike after Trump says China should not be allowed to hold the world “captive” on rare earths

Shares of rare earth metal producers soared Friday after the president published a Truth Social statement decrying what he describes as Chinese efforts to control the pipeline of the sought-after minerals.

Companies such as MP Materials — which the US government recently took a stake in — USA Rare Earth, and Critical Metals jumped, suggesting investor bets that the the administration could play a bigger role in ensuring US access to rare earths.

Donald J. Trump (@realDonaldTrump)

Companies such as MP Materials — which the US government recently took a stake in — USA Rare Earth, and Critical Metals jumped, suggesting investor bets that the the administration could play a bigger role in ensuring US access to rare earths.

markets
Luke Kawa

US stocks sink after Trump says he’s considering a “massive increase” of tariffs on Chinese imports

More tariffs might be back on the menu.

US stocks reversed lower after US President Donald Trump said in a Truth Social post that he is considering a “massive increase” on tariffs of Chinese imports.

Trump said he’s mulling higher levies as well as “many other countermeasures” because of “the hostile ‘order’ that they have just put out” restricting the export of rare earth metals. He also seemingly canceled his upcoming meeting with Chinese President Xi Jinping in South Korea in two weeks, saying “now there seems to be no reason to do so.”

The SPDR S&P 500 ETF, Invesco QQQ Trust, and iShares Russell 2000 ETF all gave up early gains to fall more than 1%. A basket of stocks compiled by Goldman Sachs of US companies that have significant revenue exposure to China is off more than 2%.

Wafer fab equipment stocks Lam Research, Applied Materials, and KLA Corp, which all count China as their top market, are underperforming, as is iPhone seller Apple.

Chip stocks Advanced Micro Devices, Intel, Broadcom, and Nvidia are all getting hit on the news, as rare earths are needed components for semiconductor production. For Tesla, it’s a similar story given its footprint in China and the importance of rare earths for EVs.

There’s also a lot of plain old dumping of recent winners.

Super Micro Computer, Coinbase, and Robinhood Markets are among the biggest laggards since Trump’s post as investors cut risk.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

The rare earth curbs are far from the only recent example of China stepping up its defense of domestic industry and resources. Qualcomm is the subject of an antitrust investigation, stringent checks of semiconductor shipments are reportedly in place as officials look to keep Nvidia’s chips from entering the country, and separate reporting indicates that US ships will be charged an escalating fee for docking at Chinese ports.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.
©2025 Sherwood Media, LLC