Lululemon has lowered its revenue and earnings expectations for 2025 due to the end of the de minimis exemption and increased tariffs, according to CEO Calvin McDonald. The company is implementing strategies to mitigate financial impacts, such as negotiating vendor rates and selectively raising prices. However, it expects a $240 million reduction in gross profit linked to these changes. CFO Meghan Frank noted that the elimination of the de minimis exemption will significantly affect margins, projecting a $320 million impact on the 2026 operating margin.

Source: https://www.supplychaindive.com/news/lululemon-de-minimis-elimination-impact-2025/760670/