Lululemon shares fell sharply on Thursday after the company warned over the impact on its business of US President Donald Trump’s tariffs and his decision to close a duty-free loophole.
The Canadian company says the US levies and the ending of the so-called de minimis exemption will cost it about $240m (£178.4m) this year.
The policy had allowed companies to ship online orders worth $800 or less into the US without having to pay import duties.
The retailer slashed its outlook, forecasting sales for the next three months of between $2.47bn to $2.5bn, which was lower than analysts had expected.
The removal of the de minimis rule will have a “significant impact” on Lululemon’s earnings as it will disrupt its US e-commerce shipments, the firm’s chief financial officer Meghan Frank said in an earnings call.
In terms of sales, the company has seen “positive momentum” overseas but is “disappointed” by its US performance, said Lululemon boss…
