New York, January 9, 2026, 13:57 EST — Regular session
- lululemon athletica inc shares slid nearly 5% in afternoon trading
- The U.S. Supreme Court said it would not hand down a closely watched tariffs ruling on Friday
- Investors are juggling tariff uncertainty with lululemon’s CEO handoff later this month
lululemon athletica inc shares dropped 4.9% to $201.88 on Friday and sank to a session low of $201.40 in afternoon trade, after the U.S. Supreme Court said it would not issue an expected ruling on the legality of President Donald Trump’s sweeping tariffs. 1
The delay is important because the case has turned into a live macro trade for import-heavy companies, with investors scanning for any hint of relief from duties that have squeezed margins. Any rollback could also set off a round of refunds to importers, and BNY Markets’ John Velis said potential winners include “retail” and consumer goods. 2
For lululemon, tariffs aren’t a theoretical problem. The company has said higher tariffs and the removal of the “de minimis” exemption — a U.S. customs rule that let shipments worth $800 or less enter duty-free — would cut fiscal 2025 gross profit by about $240 million and pressure 2026 margins. 3
The broader market stayed resilient after data showed U.S. job growth slowed in December, though traders are still bracing for volatility around the tariff decision. The court could still issue a ruling next week after passing on it on Friday. 4
Apparel names traded out of sync. Nike was little changed, but VF Corp and Under Armour fell, underscoring how investors are sorting company-specific exposure to tariffs, demand and management execution.
lululemon is trading under a governance cloud, too. Founder Chip Wilson has kicked off a proxy fight and nominated three directors, putting the CEO search on display and turning it into a public pressure test for the board. 5
Tariffs, though, are a two-way trade. Even if the Supreme Court reins in the current duties, some investors say the administration could swiftly switch to other legal tools. Michael Browne of Franklin Templeton said he expects tariffs to return “pretty quickly.” 6
Traders’ next focus is the Supreme Court’s decision, along with lululemon’s leadership change on Jan. 31. A regulatory filing said CEO Calvin McDonald will step down that day, with CFO Meghan Frank and commercial chief Andre Maestrini lined up as interim co-CEOs as the company heads into its fiscal year-end on Feb. 1. 7
