DETROIT (AP) — If Donald Trump makes good on his threat to slap 25% tariffs on everything imported from Mexico and Canada, the price increases that could follow will collide with his campaign promise to give American families a break from inflation. Economists say companies would have little choice but to pass along the added costs, for food, clothing, automobiles, booze and other goods. The president-elect floated the tariff idea, including additional 10% taxes on goods from China, as a way to force the countries to halt the flow of illegal immigrants and drugs into the U.S. But his posts Monday on Truth Social threatening the tariffs on his first day in office could just be a negotiating ploy to get the countries to change behavior. High food prices were a major issue in voters picking Trump over Vice President Kamala Harris, but tariffs almost certainly would push those costs up even further. For instance, the Produce Distributors Association, a Washington trade group, said Tuesday that tariffs will raise prices for fresh fruit and vegetables and hurt U.S. farmers when other countries retaliate. “Tariffs distort the marketplace and will raise prices along the supply chain, resulting in the consumer paying more at the checkout line,” said Alan Siger, association president. Mexico and Canada are two of the biggest exporters of fresh fruit and vegetables to the U.S. In 2022, Mexico supplied 51% of fresh fruit and 69% of fresh vegetables imported by value into the U.S., while Canada supplied 2% of fresh fruit and 20% of fresh vegetables. Before the election, about said they were very concerned about the cost of food, according to AP VoteCast, a survey of more than 120,000 voters. “We’ll get them down,” Trump to a Pennsylvania grocery store. The U.S. is the largest importer of goods in the world, with Mexico, China and Canada its top three suppliers, People looking to buy a new vehicle likely would see big price increases as well, at a time when costs they are out of reach for many. The average price of a new vehicle now runs around $48,000. About 15% of the 15.6 million new vehicles sold in the U.S. last year came from Mexico, while 8% crossed the border from Canada, according to Global Data. Much of the tariffs would get passed along to consumers, unless automakers can somehow quickly find productivity improvements to offset them, said C.J. Finn, U.S. automotive sector leader for PwC. That means even more consumers “would potentially get priced out,” Finn said. Hardest hit would be Volkswagen, Stellantis, General Motors and Ford, Bernstein analyst Daniel Roeska wrote Tuesday in a note to investors. “A 25% tariff on Mexico and Canada would severely cripple the U.S. auto industry,” he said. The tariffs would hurt U.S. industrial production so much that “we expect this is unlikely to happen in practice,” Roeska said. The tariff threat hit auto stocks on Tuesday, particularly shares of GM, which imports about 30% of the vehicles it sells in the U.S. from Canada and Mexico, and Stellantis, which imports about 40% from the two countries. For both, about 55% of their lucrative pickup trucks come from Mexico and Canada. GM stock lost almost 9% of its value, while Stellantis dropped nearly 6%. It's not clear how long the tariffs would last if implemented, but they could force auto executives to move production to the U.S., which could create more jobs in the long run. However, Morningstar analyst David Whiston said automakers probably won't make any immediate moves because they can't quickly change where they build vehicles. Millions of dollars worth of auto parts flow across the borders with Mexico and Canada, and that could raise prices for already costly automobile repairs, Finn said. The Distilled Spirits Council of the U.S. said tariffs on tequila or Canadian whisky won’t boost American jobs because they are distinctive products that can only be made in their country of origin. In 2023, the U.S. imported $4.6 billion worth of tequila and $108 million worth of mezcal from Mexico and $537 million worth of spirits from Canada, it said. “Tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry,” it added. Electronics retailer Best Buy said on its third-quarter earnings conference call that it runs on thin profit margins, so while vendors and the company will shoulder some increases, Best Buy will have to pass tariffs to customers. “These are goods that people need, and higher prices are not helpful,” CEO Corie Barry said. Walmart also that tariffs could force it to raise prices. Tariffs could trigger supply chain disruptions as people buy goods before they are imposed and companies seek alternate sources of parts, said Rob Handfield, a professor of supply chain management at North Carolina State University. Some businesses might not be able to pass on the costs. “It could actually shut down a lot of industries in the United States. It could actually put a lot of U.S. businesses out of business,” he said. Canadian Prime Minister Justin Trudeau, who talked with Trump after his call for tariffs, said they had a good conversation about working together. "This is a relationship that we know takes a certain amount of working on and that’s what we’ll do,” Trudeau said. Trump's threats come as arrests for illegally crossing the border from Mexico have . But arrests for illegally crossing the border from Canada have been rising over the past two years. Much of America’s fentanyl is smuggled from Mexico, and seizures have increased. Trump has sound legal justification to impose tariffs, even though they conflict with a 2020 trade deal brokered in large part by Trump with Canada and Mexico, said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former Clinton administration trade official. The treaty, known as the USMCA, is up for review in 2026. In China’s case, he could simply declare Beijing hasn't met obligations under an agreement he negotiated in his first term. For Canada and Mexico, he could say the influx of migrants and drugs are a national security threat, and turn to a section of trade law he used in his first term to slap tariffs on steel and aluminum. The law he would most likely use for Canada and Mexico has a legal process that often takes up to nine months, giving Trump time to seek a deal. If talks failed and the duties were imposed, all three countries would likely retaliate with tariffs on U.S. exports, said Reinsch, who believes Trump's tariffs threat is a negotiating ploy. U.S. companies would lobby intensively against tariffs, and would seek to have products exempted. Some of the biggest exporters from Mexico are U.S. firms that make parts there, Reinsch said. Longer term, Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said the threat of tariffs could make the U.S. an “unstable partner” in international trade. “It is an incentive to move activity outside the United States to avoid all this uncertainty,” she said. Trump transition team officials did not immediately respond to questions about what he would need to see to prevent the tariffs from being implemented and how they would impact prices in the U.S. Mexican President Claudia Sheinbaum suggested Tuesday that Mexico could retaliate with tariffs of its own. Sheinbaum said she was willing to talk about the issues, but said drugs were a U.S. problem. ___ Rugaber reported from Washington. AP reporters Dee-Ann Durbin in Detroit, Stan Choe and Anne D'Innocenzio in New York, and Rob Gillies in Toronto contributed to this report.The latest development came hours after thousands of his supporters, defying government warnings, broke through a barrier of shipping containers blocking off Islamabad and entered a high-security zone, where they clashed with security forces, facing tear gas shelling, mass detentions and gunfire. Tension has been high in Islamabad since Sunday when supporters of the former PM began a “long march” from the restive north-west to demand his release. Khan has been in a prison for more than a year and faces more than 150 criminal cases that his party says are politically motivated. Khan’s wife, Bushra Bibi, led the protest, but she fled as police pushed back against demonstrators. Hundreds of Khan’s supporters are being arrested in the ongoing night-time operation. Interior minister Mohsin Naqvi told reporters that the Red Zone, which houses government buildings and embassies, and the surrounding areas have been cleared. Leaders from Khan’s Pakistan Tehreek-e-Insaf party, or PTI, have also fled the protest site. Earlier on Tuesday, Pakistan’s army took control of D-Chowk, a large square in the Red Zone, where visiting Belarusian President Alexander Lukashenko is staying. Since Monday, Mr Naqvi had threatened that security forces would use live fire if protesters fired weapons at them. “We have now authorised the police to respond as necessary,” Mr Naqvi said Tuesday while visiting the square. Before the operation began, protester Shahzor Ali said people had taken to the streets because Khan had called for them. “We will stay here until Khan joins us. He will decide what to do next,” Mr Ali said. Protester Fareeda Bibi, who is not related to Khan’s wife, said people have suffered greatly for the last two years. “We have really suffered for the last two years, whether it is economically, politically or socially. We have been ruined. I have not seen such a Pakistan in my life,” she said. Authorities have struggled to contain the protest-related violence. Six people, including four members of the security services, were killed when a vehicle rammed them on a street overnight into Tuesday. A police officer died in a separate incident. Dozens of Khan supporters beat a videographer covering the protest for the Associated Press and took his camera. He sustained head injuries and was treated in hospital. By Tuesday afternoon, fresh waves of protesters made their way unopposed to their final destination in the Red Zone. Mr Naqvi said Khan’s party had rejected a government offer to rally on the outskirts of the city. Information minister Atta Tarar warned there would be a severe government reaction to the violence. The government says only the courts can order Khan’s release. He was ousted in 2022 through a no-confidence vote in Parliament. In a bid to foil the unrest, police have arrested more than 4,000 Khan supporters since Friday and suspended mobile and internet services in some parts of the country. Messaging platforms were also experiencing severe disruption in the capital. Khan’s party relies heavily on social media and uses messaging platforms such as WhatsApp to share information, including details of events. The X platform, which is banned in Pakistan, is no longer accessible, even with a VPN. Last Thursday, a court prohibited rallies in the capital and Mr Naqvi said anyone violating the ban would be arrested. Travel between Islamabad and other cities has become nearly impossible because of shipping containers blocking the roads. All education institutions remain closed.
LOS ANGELES (AP) — After struggling to run the ball consistently all season, the Los Angeles Rams finally made some progress on the ground in New Orleans. Kyren Williams and rookie Blake Corum carried the Rams (6-6) to a 21-14 win that kept them squarely in the playoff race for another week. Los Angeles racked up a season-high 156 yards rushing against the Saints, with Williams going for 104 yards and a touchdown while Corum added 42 yards on a season high-tying eight carries. The game was the inverse of most afternoons this season for the Rams, who came into the week averaging fewer than 100 yards rushing per game. The running game was sturdy and productive, while Matthew Stafford and his receivers struggled to get into a rhythm at the Superdome. Coach Sean McVay always prefers to use his run game to set up the pass, and it finally worked for once this season. “I thought Kyren ran really well," McVay said. “I thought Corum ran really well. I thought our offensive line set the line of scrimmage in the run game. We really started slow in the pass game, but I thought Matthew was excellent in the second half. We were able to get some different things off of those run actions going, and that ended up being the difference in the game.” Not coincidentally, the Rams' running game worked well on the Sunday when the offensive line finally had a starting five uncompromised by injuries or suspension for the first time all season. Right tackle Rob Havenstein returned from an ankle injury, making the group whole around rookie center Beaux Limmer, who has beaten out high-priced free agent Jonah Jackson for a starting job. The Rams still had yet another slow start in a season full of them. They ran only three plays in the entire first quarter, and they were held scoreless in the first half when their other two drives resulted in a turnover on downs and a punt. But Los Angeles rebounded with an 11-play scoring drive to open the second half featuring seven runs by Williams. He eventually moved up to fifth in the NFL with 926 yards rushing despite averaging just 4.2 yards per carry — nearly a yard less than he had last season, and the lowest average among the league's top 10 rushers this season. The Rams have thrived without a strong rushing attack before: They averaged just 99.0 yards per game on the ground, ranking 25th in the NFL, during their Super Bowl championship season in 2021-22. But McVay prefers his first option to be a strong running attack, which he had during his first three seasons in charge with Todd Gurley in the backfield and Andrew Whitworth at left tackle. “Anytime the guys up front are moving them, and (Williams) is making great reads and moves on the second level, then that is a fun feeling for the offense," Stafford said. “It’s great when you can hand the ball off and get big creases. We converted when we needed to in short-yardage stuff. I thought our guys did a really great job up front, and Kyren ran it great.” What's working The Rams have struggled in the red zone all season, but they scored touchdowns on all three trips in New Orleans. They did it by committing to the run game up the middle, setting up TD passes on the outside to Demarcus Robinson and Puka Nacua. What needs help Alvin Kamara racked up 112 yards rushing in the latest strong game by an opposing running back. Los Angeles is 28th in the league against the run, allowing 144.2 yards rushing per game — including 194 per game over the past three weeks. Stock up Rookie edge rusher Jared Verse had another outstanding game, racking up five tackles, three quarterback hits and numerous big plays that don't show up on stat sheets. He capped the performance by hitting Derek Carr from behind and forcing an incompletion from the Los Angeles 9 on New Orleans' final play. Stock down Cornerback Darious Williams gave up a touchdown pass to Marquez Valdes-Scantling and the ensuing 2-point conversion pass to Dante Pettis early in the fourth quarter, capping a second straight rough week for the free-agent signee. Williams is the Rams' best cornerback, but they haven't had an above-average shutdown pass defender since trading Jalen Ramsey. Los Angeles added cornerback depth Monday, claiming 2023 first-round pick Emmanuel Forbes off waivers from Washington. Injuries Robinson injured his hand during the game, and Stafford incurred a lateral ankle sprain. McVay said he doesn't expect either injury to affect the veterans' preparations this week. Key number 17 — Cooper Kupp's yards receiving. That's his lowest total in a game in which he didn't get injured since Oct. 18, 2020. Kupp had only six targets, few downfield routes and curiously scant chances to make big plays. Next steps The Rams are home underdogs this week against powerhouse Buffalo, followed by a Thursday night game at San Francisco. Getting even one win out of these two matchups will be difficult, but probably necessary to keep pace with Seattle and Arizona in the NFC West. ___ AP NFL: https://apnews.com/NFL Greg Beacham, The Associated PressWith something significant from which to build, North Carolina will see if it can sustain the momentum following a holiday break. The Tar Heels are back in action for their final nonconference game Sunday night when in-state opponent Campbell visits Chapel Hill, N.C. This will be the first meeting between the programs despite the campuses less than a one-hour drive apart. North Carolina (7-5) rallied to defeat then-No. 18 UCLA on Dec. 21 in New York, its first win over a ranked foe this season. It was a much-needed outcome after numerous late-game disappointments for the Tar Heels. "It's because we've been in those situations against really good competition that allowed us to have the confidence to come back, and then also the experiences of what we needed to do to finish it out and win," coach Hubert Davis said. North Carolina could turn to more four-guard lineups, Davis said. That's a deviation from what has worked for the Tar Heels through the years when they've been stabilized by a strong post presence. "We may not have tremendous size, but we do have athleticism," Davis said. The Tar Heels, who have won three of their past four games, insist they're up to the challenges despite the rocky stretches. They resume Atlantic Coast Conference play next month with three road trips in four games, so working out any kinks in the Campbell game will likely be critical. "We've been battle-tested all year," senior guard RJ Davis said. "These first 12 games, it feels like we've been in March Madness games. But that's what it's going to be like at the end of the year, where we're playing against tough teams all the way to the wire and being able to execute, being able to get an extra rebound, an extra stop." Freshman Ian Jackson has drained multiple 3-point shots in four games this season. He hit three 3s and scored a season-high 24 points vs. UCLA. Campbell (5-7), riding a two-game skid with losses at Morgan State and at home to Longwood, has defeated only three Division I teams. Sunday night marks the Camels' final outing before opening their Coastal Athletic Association schedule. "We believe that will help strengthen us to compete at a high level in CAA play," coach Kevin McGeehan of nonconference tests. North Carolina will be Campbell's third power-conference opponent (following Virginia and Ohio State). Jasin Sinani (12.4 points per game) is the only Campbell player scoring in double figures. He joins Nolan Dorsey and Cam Gregory as the only team members with more than nine starts this season as McGeehan has juggled the lineup. --Field Level Media
Myles Rice scored 18 points to lead Indiana to a 77-68 win over Winthrop on Sunday in Bloomington, Ind. Malik Reneau added 14 points and seven rebounds and Trey Galloway scored 11 points for Indiana (10-3). The Hoosiers prevailed despite shooting just 1-of-20 from 3-point range. The Eagles were a little better, shooting 6-of-23 from beyond the arc. Indiana held a 46-39 rebounding advantage and had 17 assists to Winthrop's eight. K.J. Doucet and Kasen Harrison each scored 14 points to lead five players in double figures for Winthrop (10-5), which lost for the second time in three games. Kelton Talford scored 13 points and Paul Jones III and Nick Johnson each scored 10 points for the Eagles. After Winthrop forged an 8-0 run to pull within one point, Indiana answered by scoring six straight to grab a 75-68 lead with two minutes left in the game. Winthrop had two empty possessions after that, and Indiana all but put the game away with 31.2 seconds left on a putback layup by Anthony Leal. Indiana went up 67-58 with 5:19 remaining in the game following baskets by Rice and Galloway. The Eagles answered with their big run. Harrison had a three-point play with 3:24 to go to make it a four-point game, then Johnson hit a 3-pointer with 3:16 remaining to make it 69-68. Indiana held a 41-37 lead at halftime, and the game remained close throughout the early stages of the second half. The Hoosiers took a 61-54 lead with 9:07 remaining in the game after a basket by Bryson Tucker, but Winthrop hung around and made it a 63-58 game with 6:12 left. Indiana got off to a strong start, taking a 23-16 lead with 10:27 remaining in the first half and going up 32-24 on Mackenzie Mgbako's dunk with 4:30 left until halftime. Harrison drilled a 3-pointer in the final second to cut the Eagles' halftime deficit to four points. --Field Level Media
Vance tells residents in hurricane-stricken North Carolina that they haven't been forgotten
Transcript: Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today. Javascript is required for you to be able to read premium content. Thanks for the feedback.Almost a decade since he was dethroned, Joseph Parker will again fight for his crown. After weeks of rumour and speculation, boxing's worst kept secret has been confirmed. Parker's career resurrection has taken him back to the top of the mountain where he will battle IBF heavyweight champion Daniel Dubois in Saudi Arabia on 22 February. The bout will be the featured undercard fight before Artur Beterbiev vs Dmitry Bivol undisputed world light heavyweight championship. Dubois took the title after an upset knockout win over Anthony Joshua at Wembley back in September. With Joshua not pushing for the expected rematch, Parker has been declared the next contender. Parker posted the fight card to his social media accounts with the accompanying words, "and new". It comes almost a decade after Parker won the vacant WBO world title with a decision win over Andy Ruiz Jr in Auckland. Neither Dubois, 22-2, nor Parker 35-3, are big on trash talk, and prefer to do their talking in the ring and will do so in Riyadh at what has been dubbed 'The Last Crescendo" by Saudi Arabia sports promotion Riyadh Season. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Prime Minister leads tributes to former US president Jimmy CarterJustin Tucker's erratic season isn't getting any better, and it's hurting Baltimore's outlook
President Joe Biden is considering preemptive pardons for several prominent names facing possible retribution from the incoming Trump administration, US media has reported. Among those being considered for the historic pardons are Anthony Fauci, the former White House special advisor on Covid-19, and former Republican lawmaker Liz Cheney, who has become a fierce critic of Donald Trump. The president-elect has made no secret of his desire to exact vengeance against critics and those he claims stole the 2020 election from him. Biden has discussed with advisors the possibility of using his constitutional power to protectively issue preemptive pardons -- even to people yet to be charged with any crime -- before he leaves the White House on January 20. The discussions were reported by Politico and later by the New York Times, CBS News and the Washington Post, all citing anonymous sources close to the talks. Biden sparked controversy on Sunday when, in a reversal, he pardoned his son Hunter, who was due to be sentenced this month in cases involving a gun purchase and tax fraud. Democratic Representative Adam Schiff of California, who served as lead manager during the first Senate impeachment of Trump, and retired general Mark Milley might also be in line for preemptive pardons to shield them from Trump. Milley, who was chairman of the Joint Chiefs of Staff during Trump's first term, later told journalist Bob Woodward that Trump was "a total fascist" and "the most dangerous person to this country." Overseeing such prosecutions would be the man who the president-elect has nominated to head the Federal Bureau of Investigation (FBI), Kash Patel. Patel, who held a high position in the Pentagon during the first Trump term, has said that as FBI chief he would "come after" those "who helped Joe Biden rig presidential elections." "WHEN I WIN," Trump wrote on his Truth Social platform in September, "those people that CHEATED will be prosecuted to the fullest extent of the Law." Presidential pardons, issued at the end of a term, have a long history in the United States. On his last day in the White House in January 2021, Trump pardoned 74 people accused of various crimes and misdemeanors. And in September 1974, a month after Richard Nixon resigned as president during the Watergate scandal, his successor Gerald Ford announced "a full, free and absolute pardon" for any crimes against the United States which Nixon might have committed while in office. But the multiple preemptive pardons reportedly being considered by Biden -- to insulate several people from future prosecutions that might not ever happen -- could constitute a first. rle/bbk/bgs
Pakistani security forces have launched an operation to disperse supporters of imprisoned former prime minister Imran Khan who had gathered in the capital to demand his release from prison. The latest development came hours after thousands of his supporters, defying government warnings, broke through a barrier of shipping containers blocking off Islamabad and entered a high-security zone, where they clashed with security forces, facing tear gas shelling, mass detentions and gunfire. Tension has been high in Islamabad since Sunday when supporters of the former PM began a “long march” from the restive north-west to demand his release. Khan has been in a prison for more than a year and faces more than 150 criminal cases that his party says are politically motivated. Khan’s wife, Bushra Bibi, led the protest, but she fled as police pushed back against demonstrators. Hundreds of Khan’s supporters are being arrested in the ongoing night-time operation. Interior minister Mohsin Naqvi told reporters that the Red Zone, which houses government buildings and embassies, and the surrounding areas have been cleared. Leaders from Khan’s Pakistan Tehreek-e-Insaf party, or PTI, have also fled the protest site. Earlier on Tuesday, Pakistan’s army took control of D-Chowk, a large square in the Red Zone, where visiting Belarusian President Alexander Lukashenko is staying. Since Monday, Mr Naqvi had threatened that security forces would use live fire if protesters fired weapons at them. “We have now authorised the police to respond as necessary,” Mr Naqvi said Tuesday while visiting the square. Before the operation began, protester Shahzor Ali said people had taken to the streets because Khan had called for them. “We will stay here until Khan joins us. He will decide what to do next,” Mr Ali said. Protester Fareeda Bibi, who is not related to Khan’s wife, said people have suffered greatly for the last two years. “We have really suffered for the last two years, whether it is economically, politically or socially. We have been ruined. I have not seen such a Pakistan in my life,” she said. Authorities have struggled to contain the protest-related violence. Six people, including four members of the security services, were killed when a vehicle rammed them on a street overnight into Tuesday. A police officer died in a separate incident. Dozens of Khan supporters beat a videographer covering the protest for the Associated Press and took his camera. He sustained head injuries and was treated in hospital. By Tuesday afternoon, fresh waves of protesters made their way unopposed to their final destination in the Red Zone. Mr Naqvi said Khan’s party had rejected a government offer to rally on the outskirts of the city. Information minister Atta Tarar warned there would be a severe government reaction to the violence. The government says only the courts can order Khan’s release. He was ousted in 2022 through a no-confidence vote in Parliament. In a bid to foil the unrest, police have arrested more than 4,000 Khan supporters since Friday and suspended mobile and internet services in some parts of the country. Messaging platforms were also experiencing severe disruption in the capital. Khan’s party relies heavily on social media and uses messaging platforms such as WhatsApp to share information, including details of events. The X platform, which is banned in Pakistan, is no longer accessible, even with a VPN. Last Thursday, a court prohibited rallies in the capital and Mr Naqvi said anyone violating the ban would be arrested. Travel between Islamabad and other cities has become nearly impossible because of shipping containers blocking the roads. All education institutions remain closed.
Lululemon Athletica Inc. LULU shares are trading higher after the company reported better-than-expected third-quarter financial results and increased its share buyback program by $1 billion. Throughout the third quarter, the company repurchased 1.6 million shares of its common stock for $408.5 million. Furthermore, it approved a $1.0 billion increase to its share repurchase program, bringing the total authorized repurchases to approximately $1.8 billion. Lululemon issued guidance for the 2024 fourth quarter. It sees revenue from $3.475 billion to $3.510 billion versus analyst estimates of $3.496 billion. Multiple analyst firms raised their respective price forecasts on the stock. Here are the analysts’ takes on the earnings results: Stifel analyst Jim Duffy reiterated the Buy rating on Lululemon, raising the price forecast to $438 from $370. JP Morgan analyst Matthew R. Boss reiterated the Overweight rating on the stock, increasing the price forecast to $425 from $338. Goldman Sachs analyst Brooke Roach maintained a Neutral rating on the company and raised the price forecast to $365 from $291. KeyBanc Capital Markets analyst Ashley Owens reiterated the Overweight rating on the stock, boosting the price forecast to $400 from $350. Truist Securities analyst Joseph Civello reiterated the Buy rating on the stock, raising the price forecast to $420 from $360. Guggenheim analyst Robert Drbul maintained the Buy rating on Lululemon, raising the price forecast to $415 from $350. Oppenheimer analyst Brian Nagel reiterated the Outperform rating on Lululemon. Stifel: Duffy sees Lululemon as well-positioned to benefit from ongoing trends, with international growth potentially underestimated. The analyst writes that the company may continue its strong growth by attracting new customers and increasing revenue per customer. In fact, Duffy forecasts several years of mid-teens revenue growth, margin expansion, and share repurchases, supported by the company’s capital-efficient business model. The analyst raised FY24 EPS estimates from $14.00 to $14.17. Also Read: Driving Price Innovation: Unlimited Commission-Free Option Trades – Why Serious Options Traders Choose Tradier JP Morgan: The analyst notes that the company still has strong potential in the domestic market, with international expansion offering significant untapped opportunities. Boss predicts the brand could reach around $12 billion in revenue by FY26, compared to approximately $4 billion in FY19. This growth is expected to be driven by expanding international presence, strong growth in men’s products, entry into new categories like personal care and footwear, and continued growth in e-commerce. Goldman Sachs: The analyst is encouraged by Lululemon’s sequential improvement in business and a strong start to the holiday season. Roach notes that management is progressing in product innovation and rebalancing, which should help unlock stronger growth in the U.S. market. The analyst is also positive about the company’s consistent international growth momentum and effective cost control. KeyBanc Capital Markets: The analyst sees opportunities for innovation across product categories, colors, and prints, as well as in brand awareness, which remains low in the U.S. at 36%. Owens also sees growth potential in men’s products, accessories, and international markets. The analyst adds that in 2025, Lululemon plans to expand into new markets, including Italy (company-operated) and, Denmark, Belgium, Turkey, and the Czech Republic (under franchise models). Truist Securities: The analyst notes that Lululemon’s new reporting structure, where Global Creative Director Jonathan Chung reports to CEO Calvin McDonald and Chief Merchant Liz Bender reports to Chief Brand Officer Nikki Neuburger, is streamlining the product development process. This has allowed the company to introduce new products more quickly, improving conversion rates. Civello sees new product offerings to continue improving through the fourth quarter and reach historical levels by the first quarter of 2025. Guggenheim : Drbul notes that Lululemon’s FY24 EPS estimate has been increased to $14.15, up from $14.05. This adjustment reflects a promising start to the holiday season, but the analyst remains cautious due to macroeconomic uncertainties and the shorter holiday shopping period. Oppenheimer: The analyst mentions that while they have taken a more cautious view on Lululemon in the short term, Nagel still considers the company and its shares well-positioned for the intermediate to long term. Price Action: LULU shares are trading higher by 18.5% to $408.5 at last check Friday. Read Next: EXCLUSIVE: Bitcoin Briefly Tops $100,000, But Where Do Benzinga Readers Predict It Will Finish 2024? Image via Shutterstock © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
