Lululemon topped fourth-quarter earnings and revenue estimates but issued 2025 guidance that fell short of analyst expectations. CEO Calvin McDonald said the athletic retailer saw lower U.S. traffic due to consumer spending concerns but noted positive responses to the brand’s innovation. CFO Meghan Frank said Lululemon expects a drop in 2025 gross margin due to fixed costs, foreign exchange, and U.S. tariffs on China and Mexico. Shares fell over 10% in extended trading.
