KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway
Lululemon (LULU) says the removal of the de minimis exemption will hit its gross margin harder than tariffs, cutting into profits by about $240 million this year.
What Happened
The U.S. officially ended the de minimis exemption on Aug. 29.
This policy allowed small-value packages (under $800) shipped directly to U.S. consumers from abroad to enter duty-free.
Lululemon shipped two-thirds of its U.S. e-commerce orders from Canada, and most qualified under this rule.
Impact on Lululemon
With the exemption gone, Lululemon faces higher import costs on most of its U.S. shipments.
CEO Calvin McDonald said this change — combined with Trump’s new tariffs — forced the company to slash its earnings and revenue outlook.
The estimated $240 million hit highlights how dependent LULU was on the cost-saving loophole.
Why It Matters for Investors
Lululemon has already been struggling with slowing sales momentum.
Margin pressure from higher duties may worsen profitability and slow growth further.
The stock could remain under pressure as management adjusts to the new cost environment.
Bottom Line
The closure of the de minimis loophole removes a key cushion for Lululemon’s U.S. business. With margins squeezed and sales already cooling, investors should expect tougher quarters ahead unless the company finds new efficiencies or passes costs to consumers.
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