Lululemon shares plunged in extended trading Thursday after the company gave a much worse than expected full-year outlook.

The company topped second-quarter earnings estimates but slightly missed revenue expectations. But it said it expected tariffs to hit its full-year profits by $240 million.

Lululemon said it expects full fiscal year earnings of $12.77 to $12.97 per share, well below Wall Street estimates of $14.45 per share. It also anticipates full-year revenue of $10.85 billion to $11 billion, compared with Wall Street expectations of $11.18 billion.

“We are facing yet another shift today within the industry related to tariffs and the cost of doing business,” CEO Calvin McDonald said on a call with analysts. “The increased rates and removal of the de minimis provisions have played a large part in our guidance reduction for the year.”

Here’s how the company did for its second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $3.10 vs. $2.88 expected
• Revenue: $2.53 billion vs. $2.54 billion expected

Shares of the company sank more than 12% after the bell Thursday. The stock is down more than 45% this year.

The company reported second-quarter net income of $370.9 million, or $3.10 per share, compared to $392.92 million, or $3.15 per share, in the year-ago period. Gross margin decreased 1.1 percentage points to 58.5%, and operating margin decreased 210 basis points to 20.7%.

CFO Meghan Frank said on the call that the removal of the de minimis exemption, which excluded some smaller shipments from tariffs, will significantly affect the company, representing roughly 1.7 percentage points of the 2.2 percentage point tariff-related decline in profit expected for the year.

Same-store sales in the Americas were down 4%. Overall comparable sales increased just 1% compared to Wall Street estimates of 2.2%. Lululemon said it added 14 net new stores during the second quarter, bringing its total to 784 stores.

“My view is that it’s now time to reset many of our practices related to how we develop and create the range of products that will fuel the next phase of our growth,” McDonald said on Thursday. “We have seen that when we get our product right, everything else can follow.”

Lululemon projects third-quarter revenues will be between $2.47 billion and $2.50 billion compared to Wall Street estimates of $2.57 billion. The company said it expects earnings per share in the next quarter to be between $2.18 and $2.23 per share, compared to an estimate of $2.93 per share.

McDonald said on the Thursday call that he believes the company has let its product lifecycles “run too long,” particularly in its lounge and social categories.

“We have become too predictable within our casual offerings and missed opportunities to create new trends,” he said, identifying those issues as the “root causes” of the company’s product challenges in the U.S.

“Our lounge and social product offerings have become stale and have not been resonating with guests,” McDonald added.

To regain its U.S. momentum, McDonald said the company plans to increase its new styles from 23% of its overall assortment to 35% next spring and improve its fast-track design capabilities. He said Lululemon will not make any short-term decisions that “could hurt or damage” the brand in the long-term.

“We are not satisfied with the results for the quarter, and we know our brand can and will perform better than these results,” McDonald said.

Health and Human Services Secretary Robert F. Kennedy Jr. doubled down on false claims about vaccines during his Senate testimony on Wednesday, as senators grilled him on his sweeping changes to immunization policy and federal health agencies.

Kennedy said he supports a statement made by a newly appointed member of a key government vaccine panel that mRNA vaccines pose a dangerous risk to people. Numerous studies have demonstrated that shots using mRNA technology, including Covid vaccines from Pfizer and Moderna, are safe and effective, and serious side effects have happened in extremely rare cases.

Sen. Michael Bennet, D-Colo., noted that the committee member Dr. Retsef Levi has said that evidence is mounting that mRNA vaccines cause “serious harm, including death, especially among young people,” apparently referring to a post pinned on Levi’s X account. Kennedy appointed Levi to the Advisory Committee on Immunization Practices, which advises the Centers for Disease Control and Prevention on vaccine recommendations and insurance coverage.

Kennedy said he wasn’t aware of Levi’s comments, but added, “I agree with it.”

Kennedy’s comments before the Senate Finance Committee come after he repeatedly promised the panel in January that he would do nothing as HHS secretary that makes it more difficult or discourages people from taking vaccines. Since then, he has canceled funding for mRNA shot development and made other vaccine policy changes that could limit access to immunizations, including gutting the CDC vaccine panel and dropping Covid shot recommendations for certain groups.

His comments also follows a leadership shakeup at the Centers for Disease Control and Prevention. The White House last week fired CDC Director Susan Monarez, and four senior agency officials resigned shortly after, with some of them citing the politicization of the agency and a threat to public health. In an opinion piece on Thursday, Monarez accused Kennedy of “a deliberate effort to weaken America’s public-health system and vaccine protections.”

Kennedy touted skepticism around Covid vaccines, despite evidence of their safety and effectiveness. 

“We were told again and again the vaccines would prevent transmission, they prevent infection. It wasn’t true. They knew it from the start,” Kennedy said.  

He also said he does not know how many people died of Covid and whether the vaccines prevented deaths from the virus.

“I would like to see the data and talk about the data,” Kennedy said.

But data is readily available from dozens of studies. One paper in August estimates that Covid vaccines saved more than 2 million lives, mostly among older adults, worldwide between 2020 and October 2024. 

The CDC website also says that Covid vaccines from the 2023 to 2024 season reduced the risk of severe illness from Covid by almost 70% in the first two months after vaccination in adults ages 18 and older, with protection gradually decreasing over time.

Those shots also decreased the risk of hospitalization due to Covid by around 50% in the first two months of vaccination in that same population. The Covid vaccines showed similar benefits in older adults.

Kennedy also defended his decision to fire all 17 previous members of the CDC vaccine panel, saying he didn’t politicize the committee.

“What we did is we got rid of the conflicts of interest. … We depoliticized and put great scientists on it from a very diverse group,” the HHS secretary said. “They are very, very pro-vaccine.”

But a new analysis published last month from USC researchers found that conflicts of interest on that panel had been at “historic lows for years” before Kennedy restacked it with new members, some of whom are widely known vaccine critics.

DraftKings CEO Jason Robins has never been more enthusiastic about the kickoff to the NFL — sports betting’s biggest season.

It’s second only to the Super Bowl in terms of importance for acquiring customers and growing the overall betting pool, Robins told CNBC at the Bank of America Gaming and Lodging Conference.

“The numbers just keep going up right into kickoff, and it’ll continue through Sunday,” Robins said. “We’re seeing big numbers, record numbers, and we’re really excited about what we’re going to see through the start of the season.”

The American Gaming Association estimates legal betting in the U.S. will grow by 8.5% this NFL season, to $30 billion.

DraftKings and its competitors have largely seen declines in the costs to acquire customers even as legal sports betting opportunities continue to expand. Sports betting has proven to be resilient even amid volatility in consumer sentiment and broader concerns over discretionary spending.

“We’re seeing nothing to suggest that there’s any slowdown in the numbers for our business right now, everything is going up,” Robins said.

DraftKings beat Wall Street expectations for revenue and profit when it reported second-quarter results in August, surprising investors with significant growth.

BetMGM, jointly owned by MGM Resorts and Entain is also demonstrating real momentum, raising earnings guidance for a second time this year.

BetMGM CEO Adam Greenblatt told CNBC that last week was the sportsbook’s best ever in terms of revenue, with pre-season volume up 30%.

“We’re seeing no softness. We’re seeing no reduction in average bet size. We’re seeing no reduction in how many active sessions per week, per month, that players are engaging with BetMGM,” Greenblatt said when assessing the strength of the American consumer.

“I’m delighted to say that our sector seems to be behaving in a contrarian manner, ” he said.

Greenblatt is especially enthusiastic about the cross-selling opportunities with NFL kickoff. He says 60% of sports bettors will then wager on online casino games, or iGaming, which has higher profit margins than sports betting.

The nation’s leading sportsbooks are facing new competition — as well as potential opportunities — in the form of prediction markets events contracts, where odds change based on trades, like stock prices. Events contracts in the financial markets are regulated by the Commodities and Futures Trading Commission.

Front Office Sports reported in July that DraftKings was in talks to buy Railbird, an exchange that received CFTC approval to begin trading.

Robins declined to comment on the report, but said he’s interested, though cautious, about entering predictions markets.

“We’re regulated in a lot of states, and some states have taken a very adversarial position, so we have to obviously be careful and engage the regulator,” Robins said, adding DraftKings is unwilling to risk any threat to its sports betting licenses.

In August, Flutter-owned FanDuel announced a partnership on financial events contracts with the Chicago Mercantile Exchange. And Underdog, the fantasy and sports gaming company, announced on CNBC Tuesday that it will partner with Crypto.com to offer sports predictions markets. Robinhood, Kalshi and Polymarket are also offering sports trades.

“Rapidly growing volumes, new product launches, especially around player props and parlays, and more clear direct marketing by prediction markets (post recent fundraising) are all key developments to watch for,” said Bank of America research analyst Shaun Kelly.

Investors will also be watching to see how federal courts rule on the pending question of whether sports predictions are in fact a form of sports betting. States and tribes argue it is and that offering sports trades through predictions markets violates tribes’ sovereign rights or states’ rights to legalize sports gambling.

MGM CEO Bill Hornbuckle told the BofA Gaming and Lodging conference Thursday he doesn’t endorse the predictions markets.

“Our view is that invites the federal government into a space it’s never been, and it’s not a place we’d like to see this marketplace go. Full stop,” he said.

The NFL told its employees they are under the same restrictions with regards to sports predictions markets as they are for betting. The league has said it worries about the integrity of the game in the face of the possibility of price distortion and other kinds of manipulation.