New York, Jan 9, 2026, 20:13 EST — Market closed
- Lululemon shares dropped 3.9% on Friday, closing just above $204 after slipping toward the $200 mark.
- The U.S. Supreme Court has yet to rule on tariffs, leaving cost risks front and center for retailers reliant on imports.
- Investors are eyeing Jan. 14 for the court’s upcoming opinions day, while Jan. 31 marks the planned CEO transition at Lululemon.
Lululemon Athletica shares dropped 3.9% on Friday, ending the day at $203.90 after dipping to an intraday low of $200.56. The stock pulled back sharply from a high of $213.50, settling close to a key round number watched by short-term traders.
The market slide followed a recalibration around tariff risks after the U.S. Supreme Court hinted its next batch of rulings might drop on Jan. 14. Among them is a pending challenge to President Donald Trump’s wide-ranging tariffs. The case questions whether Trump can rely on a 1977 emergency-powers statute to impose broad tariffs without Congressional approval. The court hasn’t revealed which cases it will rule on beforehand. (Reuters)
For retailers, it’s all about costs and timing. Investors have been speculating on whether a court ruling might roll back tariffs or even trigger refunds, which could boost company margins. If refunds do come through, importers could see inflows between $150 billion and $200 billion, according to market sources speaking to Reuters. “Sectors in particular would include retail as well as consumer goods,” said John Velis, head of Americas macro strategy at BNY Markets. (Reuters)
Lululemon has already warned investors that tariffs will take a toll. Back in December, the company forecasted a $210 million hit to operating income in 2025 tied to tariffs and maintained its outlook for a roughly 390 basis point drop in annual operating margin. (Reuters)
The situation is more tangled than just one macro headline. A recent filing revealed CEO Calvin McDonald will leave his post effective Jan. 31. In the meantime, CFO Meghan Frank and chief commercial officer André Maestrini will act as interim co-CEOs while the board conducts a CEO search.
The leadership shake-up has drawn activist attention. Founder Chip Wilson kicked off a proxy battle in late December, nominating three independent directors, Reuters reported. Meanwhile, the company is under pressure from activist investor Elliott Management and stiffening competition in premium activewear.
On Friday, Lululemon underperformed some of its apparel rivals despite a generally rising market. Nike climbed 1.0%, VF Corp slipped 1.6%, and Under Armour’s Class C shares tumbled 5.9%. Meanwhile, Lululemon is still trading roughly 52% below its 52-week high, according to MarketWatch data. (MarketWatch)
The tariff story has a major snag. Even if the court scraps the tariffs, getting refunds could drag on—and some importers are bracing for headaches. “It’s just going to be a dog’s breakfast,” said Danby Appliances CEO Jim Estill, signaling a messy process ahead if refunds start rolling out. (Reuters)
Treasury Secretary Scott Bessent told Reuters the Treasury holds nearly $774 billion in cash and can handle refunds if ordered. He dismissed the repayments as a “corporate boondoggle” and hinted that delays could increase the chances of a ruling favoring Trump. With markets closed until Monday, investors will be eyeing tariff-case updates on Jan. 14 and Lululemon’s CEO change on Jan. 31. (Reuters)
