Vicki M. Young

Wed, Jun 18, 2025, 9:02 AM2 min read

Lululemon Athletica Inc. is changing up part of its organizational structure, resulting in about 150 job cuts at its corporate headquarters.

The impacted employees are part of the yoga-inspired apparel firm’s store support centers.

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“As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future. Following a recent review, we have decided to evolve some aspects of our organizational structure to operate with more agility and further invest in our growth,” a Lululemon company spokesperson said, confirming media reports of the layoffs. “This is not a decision we made lightly, and we are committed to supporting our employees through this transition.”

Despite first-quarter revenue gains, investors earlier this month were spooked when Lululemon chief executive officer Calvin McDonald warned that U.S. consumers were being more cautious in their spends. That sent shares of Lululemon down 22 percent to $258 in after-hours trading on June 5. Shares of the apparel firm have fallen further, and Wednesday’s close was down 2.8 percent to $228.65.

While the company did provide second-quarter guidance — net revenue in the range of $2.54 billion to $2.56 billion — and kept its top-line forecast for the year, Lululemon did cut its earnings per share to a range of $14.58 to $14.78, down from its earlier forecast of $14.95 to $15.15 in March.

BMO analyst Simeon Siegel noted that the updated EPS forecast market the “first” fiscal-year EPS lowering in the first quarter since fiscal-year 2014. “We continue to see Lululemon as a strong, but overstretched, brand and worry about long-term domestic revenue sizing,” he said.

UBS softlines analyst Jay Sole has shares of Lululemon at “neutral.”

“A pivotal Lululemon question is if the slowdown in its U.S. business over the last 12-plus months has been temporary, driven by one-off factors, or a sign of something more fundamental. Our main takeaway from Lululemon’s 1Q report is the likelihood that something more fundamental is at play has increased,” he wrote in a note.

Sole also said the U.S. could slow down in the back half of this year due to the impact of tariffs on consumer spending, and he said that there’s also risk that Lululemon’s “China sales growth rate decelerates, too.”