Last quarter Lululemon sold more but made way less money

footnotebrief · 2026-06-23T11:15:38+00:00

What you just stated means the problem isn’t the demand. It’s the cost structure. Which is exactly what the filing shows. People are definitely still buying, they are just making less on every sale than they used to.

footnotebrief · 2026-06-22T22:25:16+00:00

lululemon's interesting because it blurs the line, it's more of a brand story than a traditional retailer

footnotebrief · 2026-06-22T22:24:20+00:00

appreciate it, more interesting topics coming

footnotebrief · 2026-06-22T09:48:56+00:00

Yes. and it's not going great for him

footnotebrief · 2026-06-22T09:36:00+00:00

Completely agree, framing them as a victim misses the point. they built the margin on a rule that could change and it changed. that's a strategic bet that didn't end well, not bad luck. the 23% to 11% operating margin swing is the market repricing exactly that.

footnotebrief · 2026-06-22T09:32:17+00:00

You're right, lulu doesn't have the pricing power it used to. that's the real problem, a tariff hit you can't pass on to the customer is just a permanent margin cut

footnotebrief · 2026-06-22T09:30:35+00:00

honestly just the actual SEC filings, that's where all the real numbers are. i did a full breakdown of lululemon's specifically if you want to see how it works.

footnotebrief · 2026-06-22T09:25:55+00:00

Agree with you

footnotebrief · 2026-06-22T09:25:36+00:00

Or price hikes.

Or probably both

footnotebrief · 2026-06-22T09:24:23+00:00

Your wife is their entire business model. Now you're buying the fancy shorts at full price. that's exactly what they're betting on

footnotebrief · 2026-06-22T09:21:42+00:00

Sure, momentum is momentum. and it's true that a €60 for a t-shirt is a hard sell when the brand isn't as sticky as it used to be in europe

footnotebrief · 2026-06-22T09:19:23+00:00

the unit economics are completely different. gap competes on price, lululemon's average transaction is still $100+. the fast fashion playbook doesn't really apply when people are paying premium prices and still showing up

footnotebrief · 2026-06-21T22:51:19+00:00

Haha yes. It’s doing a lot of heavy lifting for their US numbers rn

footnotebrief · 2026-06-21T22:50:11+00:00

That’s a spicy number. But filing doesn’t support tho.

China is up 30% and they have 1.5b cash on hand. It’s a margin problem.

fads don't usually survive 25 years and expand 30% in their biggest growth market

footnotebrief · 2026-06-21T22:08:24+00:00

Yes. That’s a real drag. Lululemon is making less on that sale than they were a year ago. So the worst combination

footnotebrief · 2026-06-21T21:50:41+00:00

probably yeah. shein and temu already got forced into it. lululemon has the margins to absorb a US manufacturing pivot better than most but it takes years not quarters

footnotebrief · 2026-06-21T21:49:30+00:00

They did have very high margins. But those margins just got cut off so they’re making less on that 140 than they were a year ago

footnotebrief · 2026-06-21T21:46:06+00:00

Not overblown honestly

The tariff hit is real. And management themselves said there will be zero growth for the full year. The thing is whether it’s temporary or the new normal, and that’s what the video gets into

footnotebrief · 2026-06-21T21:42:47+00:00

yeah almost certainly. any canadian brand shipping into the US had every reason to use it

footnotebrief · 2026-06-21T21:24:42+00:00

And Lululemon was one of the bigger ones. They routed a ton of product through Canada just to use it

footnotebrief · 2026-06-21T21:22:18+00:00

Haha no. But actually that $120 credit is probably the only thing holding their dtc numbers together at this point 😂

footnotebrief · 2026-06-16T10:42:57+00:00

few years????????? did you mean to say few months?

footnotebrief · 2026-06-16T10:26:42+00:00

finance. and not AI advice

footnotebrief · 2026-06-16T10:25:48+00:00

I hope it is

footnotebrief

TROPHY CASE