Lululemon shares plunged after it warned business would be hit by Donald Trump’s tariffs and the closure of a tax-free loophole.
The Canadian sportswear brand, worn by seven-times F1 world champion Lewis Hamilton and the Duchess of Cambridge, said the policies would cost it around £178.4m this year.
The US President axed the ‘de minimis’ rule that had allowed orders worth $800 or less into the US without having to pay import duties. Most of Lululemon’s products are made in Asian countries subject to high levies.
Shares on New York’s Nasdaq stock exchange fell 18 per cent yesterday, taking losses to more than a third over the past year.
Unfashionable: The Canadian sportswear brand is worn by seven-times F1 world champion Lewis Hamilton
Chief executive Calvin McDonald said he was ‘disappointed’ with the business’s performance in the US, where sales rose just 1pc over the three months to June.Â
Total sales increased 7 per cent to £1.85billion as analysts said their products were not appealing to buyers.
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