Lululemon Stock Surges 3.15% Despite Tariff Woes, Ranks 54th in Trading Volume

On April 4, 2025, Lululemon Athletica (LULU) saw a significant increase of 3.15% in its stock price, with a trading volume of 21.60 billion, ranking 54th in the day's market activity.

Lululemon's stock price has been under pressure due to the recent announcement of a 46% tariff on imports from Vietnam by President Trump. This tariff has led to a selloff in the retail sector, particularly affecting brands that rely heavily on Southeast Asian production. The tariff strategy, which aimed to diversify manufacturing locations, has backfired, causing Lululemon to face increased costs and operational challenges.

In response to the tariff announcement, Baird lowered its price target for Lululemon from $450 to $370, while maintaining an Outperform rating. The firm updated its model to reflect the potential impact of the tariffs on Lululemon's financial performance. The new tariffs have forced U.S. apparel and shoe manufacturers to explore alternative manufacturing locations, adding to the uncertainty in the market.