Squawk on the Street SOTS 2nd Hour: August Jobs Report w/JPMorgan Chief Strategist & Goldman Chief Economist… & LIVE: Lululemon CEO 9/5/25
Sep 5, 2025
Calvin McDonald, CEO of Lululemon, discusses the activewear brand's challenges following disappointing earnings guidance and how tariffs are affecting their market strategies. The conversation dives into the importance of innovation and adapting to competitive pressures in the premium segment. McDonald emphasizes Lululemon's commitment to brand momentum and customer satisfaction while addressing growth potential in international markets. Meanwhile, broader economic discussions touch on the implications of the latest jobs report and significant shifts in the stock market.
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Jobs Weakness Raises Fed Cut Odds
- The August jobs print showed only 22,000 jobs added, signaling clear labor-market cooling.
- Bond markets reacted by pricing in multiple Fed cuts, lifting rate-cut odds for Sept, Oct, and Dec.
Uncertainty, Not Rates, Is Dragging Growth
- David Kelly called the economy a slowing 'tortoise' and stressed uncertainty as a drag on growth.
- He argued rate cuts won't fix structural problems and mainly boost asset prices, not sustainable growth.
Act Now On Tariffs: Rework Network And Pricing
- Calvin McDonald said Lululemon will shift distribution, pricing, and vendor costs to offset tariff changes.
- He advised acting now on known policy changes and reconfiguring networks even though it will take time.