Lululemon Athletica

Evidence: multi‑year gross margins in the high‑50s and the ability to price premium basics and technical lines signal pricing power. FY2025 guidance explicitly bakes in tariff headwinds and assumes mitigation through vendor savings and pricing, showing management’s confidence in pass‑through capacity.

Near‑term, U.S. softness and promotional cadence temper the degree of pricing flexibility. Our assessment: strong but being tested; latent power remains if product newness reaccelerates.