Lululemon shares experienced a significant drop after the company issued a warning regarding the financial strain from US President Donald Trump's tariffs and the closure of a duty-free loophole. The Canadian company anticipates these changes will cost them approximately $240 million (£178.4 million) this year, leading to a slashed sales outlook for the coming months.

• The ending of the de minimis exemption, which previously allowed duty-free shipment of online orders under $800 into the US, is a major factor impacting Lululemon’s e-commerce.
• Chief Financial Officer Meghan Frank stated the removal of the rule will have a "significant impact" on earnings.
• Lululemon boss Calvin McDonald noted "positive momentum" overseas but disappointment with US performance, as the company faces increased competition and outdated product cycles.
• Other sportswear brands like Adidas and Nike have also raised prices due to tariff impacts, with Adidas expecting a €200 million (£173 million; $233 million) cost.