Lululemon (LULU): Tariff margin collapse & shedding 15% of store SKUs [Q1 2026]

Lululemon’s Q1 2026 results reveal a brand scrambling to adapt as unexpected US tariff changes crush margins and founder drama actively drives shoppers away. In ~10 minutes:• US tariff policies wipe out 280 basis points of gross margin.• Founder proxy fights cause measurable declines in retail foot traffic.• Management is slashing 15% of in-store SKUs to clear out clutter.• A risky pivot compresses supply chain lead times to 12 months.With shares tumbling 12% after-hours and North American growth turning negative, incoming external CEO Heidi O'Neill faces a massive restructuring challenge. To salvage profitability, the apparel giant must rely on ultra-lean manufacturing while hoping customers return to core staples rather than failed fashion experiments. 📉lululemon athletica inc. (LULU) | Q1 FY2026AI-assisted production. Feedback/ticker requests: https://x.com/EarnUnscripted.