Tariff rule change slashes Lululemon profit despite higher sales
Lululemon's second‑quarter sales rose slightly, but net income fell about 37% as the removal of the U.S. de‑minimis exemption added a $240 million hit to gross profit, shaving 1.1 percentage points off margin. The policy shift forced the company to slash its full‑year earnings outlook and lean on pricing and supply‑chain tweaks to protect profitability.