Major consumer and retail brands faced severe headwinds as Lululemon cut its full-year guidance and Nike was removed from the S&P 100 index after significant market value losses. Jaguar Land Rover announced 4,000 job cuts following a cyberattack and US tariffs. Meanwhile, Huawei launched its new trifold smartphone in China, and Pop Mart expanded its global footprint with a new Paris flagship store.
01Earnings
Lululemon Stock Plunges 15% on Weak Earnings and Forecast
Relying on one-off tariff refunds to protect margins masks underlying demand erosion in premium apparel when social commentary shifts consumer preference away from core franchises.
Lululemon Athletica shares tumbled 17 percent to close at $101 on Friday after the athleisure retailer slashed its full-year for the second consecutive quarter and reported a steeper-than-expected sales decline. Net fell 4 percent to $2.42 billion for the second quarter ending August 2, missing consensus expectations and dragging comparable sales down 9 percent overall. In the Americas, which is the company's largest market, revenue dropped 8 percent and comparable sales fell 12 percent. Interim co-CEO and CFO Meghan Frank attributed the softening trend to negative media and social commentary alongside weaker-than-planned consumer response to new product launches. Sales of flagship leggings dropped roughly 20 percent during the period as shoppers pivoted toward looser silhouettes. Gross profit slipped 1 percent to $1.5 billion, though expanded by 200 to 60.5 percent due to a $134.5 million refund. fell to $329.22 million, yielding diluted of $2.92. Reflecting the broader demand slowdown, management lowered full-year 2026 revenue guidance to a range of $10.35 billion to $10.5 billion, down from an earlier forecast of $11.0 billion to $11.15 billion. Full-year diluted earnings per share are now expected between $9.48 and $9.73, down from prior estimates of $10.95 to $11.15. The retailer also pulled back on its physical expansion plans, trimming its target for net new store openings this year to 35 from 40.
Tesla Highlights European Self-Driving Safety Data Ahead of EU Vote
Tesla securing European Union approval for full self-driving would unlock high-margin recurring software revenue across a market where regulatory scrutiny of proprietary safety claims remains the primary hurdle.
The National Highway Traffic Safety Administration opened an audit query into Tesla to examine the self-certification of its Cybercab robotaxi following its commercial deployment in Austin, Texas. The vehicle lacks conventional controls including a steering wheel, brake pedals, and mirrors, prompting regulators to question whether it complies with existing Federal Motor Vehicle Safety Standards. Tesla relied on a self-certification process rather than seeking a federal exemption, bypassing the formal review path taken by rival autonomous vehicle developers such as Amazon unit Zoox. The audit query designated AQ26002 will review the technical data and compliance framework Tesla used to approve the vehicles for public roads. Tesla stock fell nearly 6 percent to $354.08 following the announcement, reversing gains from the launch event.
Huawei Launches New Foldable Smartphone to Compete With Apple and Xiaomi
Deploying complex chip architectures to bypass US export controls allows Huawei to protect its domestic premium pricing power against Apple despite external supply chain limits.
Huawei launched the Mate XT2 on Monday, rolling out a new flagship trifold smartphone to defend its dominant position in China's premium handset market. Prices for the device start at 19,999 yuan, or roughly $2,980, and scale up to 24,999 yuan, or about $3,725, with sales scheduled to begin on September 12. The phone folds out twice into a tablet-sized screen and runs on Huawei's new Kirin 9050 Pro chip, which utilizes a LogicFolding design architecture to improve efficiency around US technology restrictions. Huawei commanded 68 percent of China's folding phone shipments and 22.6 percent of the country's total smartphone market in the second quarter, leading rivals Apple and Xiaomi. Xiaomi shares sank 3 percent in afternoon trade following the launch, while Xiaomi and Apple prepared their own competing hardware releases.
Hana Financial Backs Nationwide Discounted-Egg Initiative in South Korea
By directly funding poultry farm logistics to bypass wholesale intermediaries, Hana Financial uses corporate social capital to subsidize local retailer foot traffic during peak seasonal demand.
Hana Financial Group joined forces with small-business support organizations to supply 120,000 trays of discounted eggs to over 4,000 neighborhood supermarkets across South Korea. Under the initiative, shoppers can purchase 60 eggs for 9,990 won, a price roughly 32 percent below the August average retail price of 7,332 per tray of 30. Hana Financial is funding washing, sorting, and nationwide logistics expenses through a shared-growth donation, while partnering organizations handle distribution and fair-trade guidelines. Twenty poultry farms were selected to supply the eggs directly and minimize intermediary margins. The project aims to ease household grocery burdens ahead of the Chuseok holiday while drawing foot traffic back to local independent stores.
Egg Price per 30-Egg Tray (KRW)
Discount eggs cost 32 percent less than the August average retail price.
Pop Mart Expands to Paris Flagship Store Amid Slowing Overseas Sales
High-profile luxury partnerships increase brand prestige but fail to fix the fundamental volume and margin pressures facing mass-market collectible toy retailers expanding abroad.
Pop Mart International is opening its first European flagship store in Paris on Boulevard Haussmann as the Chinese collectible toymaker pushes its global retail footprint forward. Scmp.com reports that founder and CEO Wang Ning traveled to Paris ahead of the launch to meet LVMH chairman and CEO Bernard Arnault, gifting him a Labubu doll. The meeting included Dior CEO Delphine Arnault and Louis Vuitton CEO Pietro Beccari, following an earlier July visit where Wang met Apple CEO Tim Cook and then-incoming Apple CEO John Ternus in Cupertino. Morningstar analyst Jeff Zhang notes that these ties are underpinned by potential collaborations across major intellectual properties following a prior partnership with Moynat. While the meetings elevate the brand profile, analysts suggest co-branded luxury products will not materially lift overseas as international sales cool.
Mandated index rebalancing forces passive capital out of declining consumer discretionary brands, accelerating the equity market's structural reallocation toward enterprise hardware and cybersecurity infrastructure.
Nike is exiting the 100 after nearly 18 years as part of a September index reshuffle that highlights the surging of technology companies. The apparel giant will leave the on September 21 following a stock drop of about 40 percent in 2026 and a five-year slide of roughly 76 percent. Its market value has declined to close to $57 billion from about $264 billion at the end of 2021, and the stock recently closed at $38.40. Four technology companies - Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk - are taking the open seats in the index. Nike finished fiscal 2026 with of approximately $46.4 billion, alongside declines across Nike Direct, online sales, and its Greater China business. Funds tracking the S&P 100 must now sell their shares in the leavers and buy the newcomers, adding further weight to around Nike's reduced market capitalization.
Nike Market Capitalization ($B)
Nike has lost about $207 billion in market value since the end of 2021.
Operational vulnerabilities like extended factory downtime can compound existing auto export tariff friction, turning temporary supply disruptions into permanent corporate overhead reductions.
Jaguar Land Rover will cut 4,000 jobs over the next two years, amounting to roughly ten percent of its global workforce. The luxury car manufacturer is targeting £1.7 billion in cost savings through a voluntary redundancy program aimed primarily at management and salaried roles in the UK. Chief executive PB Balaji pointed to intense competition from Chinese automakers, sector-wide US , and the expensive technological shift toward electric vehicles. The cuts follow a devastating cyberattack last year that halted production for more than a month and cost the company £1.9 billion. Business Secretary Jonathan Reynolds has ruled out a government while arranging meetings with JLR executives and union leaders to discuss mitigating job losses.
Corporate operational stumbles and demand shifts are weighing heavily on legacy retail giants across global markets. Whether heavy restructuring and aggressive product launches can offset rising foreign trade barriers and shifting consumer spending remains unresolved.
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