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Brands Like Lululemon Are Feeling 'De Minimis' Pain—But Some Companies Are Cheering

1. Lululemon downgraded its annual outlook due to tariff impacts. 2. New import taxes will cost Lululemon an estimated $240 million this year. 3. De minimis tax exemption's end affects many retailers with physical stores. 4. Lululemon fulfills two-thirds of online orders from Canada, now subject to tariffs. 5. Domestic companies might benefit as consumers seek alternatives to imported goods.

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FAQ

Why Bearish?

The projected $240 million tariff obligation dramatically increases operational costs, which may deter investors. Historical examples include Nike facing similar tariff pressures affecting its stock prices in the past.

How important is it?

The article outlines significant cost factors affecting LULU, likely influencing market perception and stock performance.

Why Short Term?

The immediate financial strain due to tariffs will likely reflect in Q4 earnings and future guidance. Temporary adjustments to pricing strategies may not sufficiently offset these impacts soon.

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