By Suzanne Kapner
Shares of both Lululemon and Canada Goose-two Canadian fashion brands-fell early Monday, on concerns about President Trump's 25% levy on imports from the country.
But tariffs won't affect the two companies in the same way: Lululemon leggings likely won't get hit by but Canada Goose down jackets might.
That's because Lululemon, whose headquarters are in Vancouver, produces most of its athletic gear in Cambodia, Sri Lanka, Indonesia, Bangladesh and elsewhere in Asia, according to securities filings.
Toronto-based Canada Goose, on the other hand, makes nearly all of its down-filled coats in Canada. As of March, the company operated seven manufacturing facilities in Canada, filings show.
It is unclear whether Canada Goose will absorb the tariffs or pass some costs on to consumers. Companies typically look at a combination of price hikes and cost reduction to offset tariffs, industry executives said.
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(END) Dow Jones Newswires
February 03, 2025 09:21 ET (14:21 GMT)
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