Shares of Lululemon Athletica (LULU 2.84%) were pulling back today in response to the Supreme Court's decision to delay a ruling on tariffs.
The stock was one of several in the retail sector to fall, and was trading down 4.5% as of 12:36 p.m. ET.
Image source: Lululemon.
What happened with the Supreme Court
A number of retailers, including Lululemon, had sued the Trump administration for refunds if tariffs are reversed, and investors had anticipated a decision today from the court. While a decision is still expected to come, it's unclear when that will happen.
Lululemon has been hit hard by tariffs, and the headwinds could have contributed to the decision to push out CEO Calvin McDonald, and the turmoil that has surrounded the company since then, as founder Chip Wilson is pushing for a proxy battle.
Lululemon said before that the removal of the de minimis exemption would cost it about $240 million in fiscal 2026, and it has forced it to rearrange its distribution network to fulfill U.S. online orders domestically.
NASDAQ: LULU
Key Data Points
What's next for Lululemon
Lululemon was one of the worst-performing stocks on the S&P 500 last year as the company saw sales stagnate in its core North American market due to weak execution and headwinds in discretionary spending.
McDonald had announced a turnaround plan, but it's unclear where that goes without him at the helm. Still, the stock looks like an attractive value at the current price if it can get back to growth as it trades at a price-to-earnings ratio of just 14.
