Connect with us

Crypto World

Bessent names digital assets among possible targets in Iran sanctions push

Published

on

Bessent names digital assets among possible targets in Iran sanctions push

U.S. Treasury Secretary Scott Bessent has said digital assets, airlines and the maritime industry could face new measures as the Trump administration prepares to increase economic pressure on Iran.

Summary

  • Scott Bessent said digital assets, airlines and the maritime industry could face new U.S. measures targeting Iran.
  • The Treasury secretary warned governments and businesses against providing economic support to Tehran.
  • More sanctions against Iranian banks could come this week, while airline leasing companies are another possible target.
  • The U.S. has already frozen or seized hundreds of millions of dollars in Iran linked cryptocurrency and sanctioned exchanges and wallets tied to Tehran.

Reuters reported Wednesday that Bessent identified the three areas as possible targets while Washington considers further action against Tehran, with Iranian banks and companies involved in aircraft leasing potentially facing new restrictions as well.

The comments came as the administration seeks to cut Iran off from companies and countries that continue to provide economic support. Asked about Russia’s backing for Tehran during an interview with Fox News following this week’s G20 gathering in North Carolina, Bessent warned governments and businesses against maintaining ties with Iran.

Advertisement

“My message to everyone is stay away. We all want this conflict to end, and the fastest way for the conflict to end is for no one to provide any support to this regime,” Bessent told Fox & Friends.

The warning followed Russian President Vladimir Putin’s expression of support for Iran a day earlier. Bessent did not limit the administration’s message to Moscow, saying U.S. officials were speaking with parties that continued to support Tehran.

“We are having very fulsome talks with anyone supporting the regime,” he said.

Digital assets could face further Iran sanctions

Bessent did not identify particular cryptocurrencies, exchanges, wallets or other digital asset businesses that could be targeted in the next round of measures.

Washington, however, has already expanded its authority to pursue Iran-linked cryptocurrency activity. On Aug. 24, the Treasury Department launched Operation Economic Outcast, covering digital assets alongside technology, gold, aviation, shipping and other financial channels used by Iran.

Under the measures, the Office of Foreign Assets Control was given authority to sanction people operating in Iran’s digital asset sector, including actors based outside the country. Treasury said at the time that Iran had used cryptocurrency to move funds connected to the government and the Islamic Revolutionary Guard Corps.

Advertisement

A subsequent sanctions package targeted nearly 60 entities, individuals and vessels across Iran-linked oil, nuclear, cyber and missile networks. Treasury accused Russian national Yuri Obukhov of processing more than $100 million in cryptocurrency linked to Iranian oil sales since 2023.

The department said Obukhov worked with an IRGC-linked network that converted proceeds from oil sales into digital assets. Foreign financial institutions facilitating significant transactions for sanctioned parties could face restrictions on their access to U.S. correspondent accounts under the measures.

Crypto.news previously reported in June that Treasury had sanctioned four Iranian exchanges, including Nobitex, Wallex, Bitpin and Ramzinex, as part of an earlier enforcement campaign. Nobitex CEO Seyed Ali Khoee and chairman Amir Hossein Rad were included in the sanctions.

Advertisement

Treasury accused the exchanges of providing sanctioned Iranian entities with access to cryptocurrency markets. Blockchain analytics firm Chainalysis has estimated that Nobitex handles roughly half of Iran’s crypto trading activity.

U.S. has frozen Iran-linked crypto assets

Digital assets have become a recurring part of Washington’s financial actions against Tehran this year.

In July, U.S. authorities froze more than $130 million in cryptocurrency held in wallets linked to Iran’s central bank. Four Tron wallets holding roughly $131 million in USDT were frozen as part of the action.

Bessent said at the time that Treasury remained committed to disrupting Iran’s use of digital assets. The July action followed a much larger freeze in April involving wallets tied to the IRGC.

Advertisement

Tether froze $344 million in USDT across two Tron addresses at the direction of U.S. authorities after OFAC targeted the wallets. One held roughly $213 million in USDT, while the other contained approximately $131 million.

By late July, Bessent said the amount of cryptocurrency seized or frozen from Iranian sources since the conflict began was approaching $1 billion.

The enforcement campaign has extended beyond wallets and domestic Iranian trading platforms. Treasury has targeted intermediaries and companies that it says help Tehran move funds outside conventional banking channels.

Iran’s use of cryptocurrency has drawn particular attention from U.S. authorities because digital assets have been incorporated into several state-linked payment channels. Iranian military export arrangements have permitted settlement through digital currencies, while maritime transactions have come under scrutiny as Washington targets revenue connected to the Strait of Hormuz.

Advertisement

Maritime networks remain under Treasury scrutiny

In July, Treasury sanctioned two Iranian maritime firms after accusing them of supporting an IRGC-linked system used to collect revenue from vessels traveling through the Strait of Hormuz.

OFAC designated HormuzSafe Marine Services Authority and Persian Gulf Marine Insurance Company. Treasury alleged HormuzSafe accepted Bitcoin as part of a payment structure intended to bypass financial restrictions.

Eight shipping companies and eight vessels were targeted in the same action over alleged involvement in transporting Iranian petroleum.

Treasury did not publish Bitcoin wallet addresses, transaction hashes or cryptocurrency payment totals when announcing those designations.

Advertisement

Shipping has remained a major part of U.S. sanctions enforcement because Iranian oil exports depend on networks of vessels, insurers, intermediaries and overseas buyers. Bessent’s latest comments leave the maritime sector among the areas Washington could target again as the administration seeks to restrict Iran’s remaining international financial connections.

Airlines and Iranian banks could face new measures

Aircraft-related businesses have emerged as another possible focus of the next sanctions package.

Bessent said Tuesday that airline leasing companies could be targeted, potentially extending the administration’s actions to businesses involved in providing aircraft or related services to Iran.

More sanctions against Iranian banks could arrive this week, according to the Treasury secretary. He did not identify the financial institutions being considered or provide a timetable for the measures.

Advertisement

The administration’s warning now covers companies and governments dealing with Tehran as Washington seeks to deter third parties from providing economic support. Bessent’s remarks came after the G20 gathering in North Carolina and followed Putin’s public support for Iran.

While questioned specifically about Russia, Bessent framed the warning as applying to any party maintaining support for Tehran.

“My message to everyone is stay away,” he said.

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Bitcoin bear market may not be over, Fidelity warns

Published

on

Bitcoin and gold signal a global break from the dollar, Fidelity says

Bitcoin recorded its strongest monthly gain since November 2024 during August, but Fidelity said the advance does not prove that the latest crypto bear market has ended.

Summary

  • Bitcoin posted its strongest monthly gain since November 2024, according to Fidelity’s fourth-quarter outlook report.
  • Fidelity said August’s rally does not confirm that Bitcoin’s latest bear market has already ended.
  • Bitcoin gained more than 25% during August’s third week as market volatility sharply increased again.
  • The SEC’s Regulation Crypto Assets comment period remains open through October 20, 2026, for comments.
  • Senate lawmakers face a September 15 procedural vote determining whether CLARITY formally advances toward debate.

In its fourth-quarter crypto market outlook, Fidelity said Bitcoin, Ethereum and several altcoins recorded their strongest positive months since late 2025. Bitcoin gained more than 25% during the third week of August alone.

Ethereum rose 34.1% during the same period, while Solana advanced 28%, according to Fidelity. The gains followed relatively subdued market activity from June through the middle of August.

Advertisement

However, Fidelity warned that the rally could represent either the beginning of a sustained recovery or a temporary move within a continuing bear market.

Bitcoin bear market faces a November cycle test

Some investors are watching November 2026 as a possible market-bottom period based on Bitcoin’s historical four-year cycle. Bitcoin’s previous major bear-market bottom occurred in November 2022.

Applying the same approximate interval would place the next potential bottom around November 2026. Fidelity stressed that historical cycles have never followed precise four-year schedules and cannot reliably identify market turning points.

Advertisement

The firm said Bitcoin may have already reached its low in July. It could also decline again and establish another low during November or later.

“Despite the recent push higher in price, there is no guarantee the bear market is over,” Fidelity said.

Chris Kuiper, vice president of research at Fidelity Digital Assets, said adoption has historically occurred in waves that can help sustain market cycles. He argued that a longer holding period has generally proved more useful than attempting to time exact bottoms.

That view remains an observation based on historical performance. It does not establish that Bitcoin will repeat an earlier cycle or continue appreciating.

Volatility shift offers a possible recovery signal

Fidelity identified Bitcoin’s transition from lower volatility to a sharp upward expansion as one possible sign that sellers were becoming exhausted.

Advertisement

Kuiper said digital assets experienced relatively low volatility between June and mid-August. Fidelity’s analysis placed assets such as Bitcoin near the lower, or “value,” end of their historical ranges during that period.

The subsequent rally resembled volatility patterns seen near some previous bear-market endings. Bitcoin’s rapid advance above $80,000 was followed by a retreat toward $79,250, as crypto.news reported in its analysis of overbought conditions increasing short-term pullback risks.

That technical reading did not establish a new bear market. It showed that Bitcoin had risen rapidly enough to increase the probability of consolidation after the advance.

Kuiper also noted that developments which might previously have pressured prices, including a hardware-wallet security incident and delays surrounding the CLARITY Act, did not reverse the August rally.

Advertisement

This resilience “could further strengthen the case” that cryptocurrencies are near a bottom, Kuiper said, while stopping short of confirming one.

Adoption continued while cryptocurrency prices weakened

Fidelity said digital-asset adoption remained resilient during the earlier market decline. Stablecoin transaction volume, tokenized real-world assets and institutional participation continued growing even as the broader market capitalization weakened.

The firm described network adoption measures as comparable to fundamental indicators used when evaluating traditional businesses. Rising transaction activity can demonstrate continued use, although it does not guarantee higher token prices.

Institutional investment products also showed mixed allocation patterns before Bitcoin’s August rally. In related coverage, crypto.news reported that Ethereum funds attracted more capital than Bitcoin funds during July.

Advertisement

Bitcoin exchange-traded fund demand subsequently recovered during August. Fidelity listed stronger institutional adoption among the factors that could support another bull market, alongside regulatory changes, monetary policy and new blockchain use cases.

U.S. policy decisions remain key fourth-quarter catalysts

The U.S. regulatory calendar could provide two major tests during the fourth quarter. The CLARITY Act remains pending in the Senate after the Senate Banking Committee advanced it by a bipartisan 15–9 vote in May.

A procedural vote is scheduled for Sept. 15 and requires 60 votes to advance the bill toward debate. The legislation would divide elements of digital-asset oversight between the SEC and CFTC. However, passage remains uncertain, and further amendments could require additional House consideration.

As crypto.news reported, the bill now faces a tight congressional timetable before the midterm elections.

Advertisement

Separately, the SEC proposed Regulation Crypto Assets on Aug. 18. The proposed framework would create two securities-registration exemptions for qualifying crypto investment contracts.

The SEC’s formal proposal would allow eligible offerings of up to $5 million over four years or $75 million during a 12-month period, subject to specific conditions. Public comments are due by Oct. 20.

Crypto.news previously examined how the proposed exemptions would reshape token fundraising. The proposal is not final and may change following public feedback.

These policy proceedings, monetary conditions and institutional participation could shape Bitcoin’s fourth-quarter direction. None provides confirmation that the bear market has ended, leaving price action and adoption data as continuing tests of the August recovery.

Advertisement

Source link

Continue Reading

Crypto World

Bitcoin Hits $82,000 and Fidelity Says It's Unsure If the Bear Market Is Over

Published

on

Bitcoin Hits $82,000 and Fidelity Says It's Unsure If the Bear Market Is Over

Bitcoin (BTC) hit an intraday high of $82,108 before easing to trade near $81,050. That is up 4.5% over the past 24 hours, according to CoinGecko data.

The move extends an August rally. Fidelity Digital Assets says the jump alone does not confirm the bear market has ended.

Why Fidelity Is Still Cautious

Bitcoin logged its strongest monthly gain since November 2024 in August. Ether (ETH) and Solana (SOL) climbed even harder over the same stretch.

Bitcoin has spiked again to sit above $80,000. Image Source: CoinGecko

Fidelity’s Chris Kuiper points to a pattern seen before past bull runs. Low volatility tends to precede a sharp upward move. That is roughly what played out from June into late August, he says.

Some traders are also watching bitcoin’s four-year cycle theory. The idea holds that bear-market bottoms have historically landed about four years apart. That points to a possible bottom near November 2026, based on the November 2022 low.

Advertisement

Kuiper cautions the pattern has never repeated on a precise schedule and should not be used to time entries. This cycle’s low may already have formed in July, he adds, or a fresh low could arrive later this year.

Others Are Ready for a Bitcoin Bull Market

Not every analyst agrees. Eric Crown argues in a recent bear market call that the downturn already ended in August.

“The more important point for investors is that adoption of digital assets has happened in waves, which can perpetuate cycles.”
Chris Kuiper, Vice President of Research, Fidelity Digital Assets

Kuiper adds that recent negative headlines failed to drag prices lower. A hardware wallet security incident is one example he cites. He calls this a sign that sellers may be running low on room to push the market down.

The CLARITY Act, a bill meant to clarify federal oversight of crypto, remains stuck in the Senate. A voting day cut makes quick passage unlikely. Separately, the SEC’s Regulation Crypto Assets, a framework for early-stage crypto offerings, remains open for public comment.

Advertisement

Fidelity points to growth in stablecoins and real-world assets, tokenized versions of things like bonds and real estate. That growth shows network fundamentals held up even as price lagged, it says.

It argues adoption and Bitcoin’s price action are now moving back in step. Whether that holds through the rest of the year is what Fidelity says investors should watch next.

The post Bitcoin Hits $82,000 and Fidelity Says It's Unsure If the Bear Market Is Over appeared first on BeInCrypto.

Source link

Advertisement
Continue Reading

Crypto World

US, UK Launch Joint Crypto Scam Center Alliance

Published

on

US, UK Launch Joint Crypto Scam Center Alliance

The United States and United Kingdom have formed a joint law enforcement alliance targeting scam centers involved in crypto and cyber-enabled investment fraud. 

On Thursday, the US Department of Justice announced that the US Attorney’s Office for the District of Columbia, the Crown Prosecution Service of England and Wales and the UK National Crime Agency signed a memorandum of understanding. The DOJ described it as the “first-of-its-kind” international cooperation agreement aimed at disabling such scam centers.

Under the agreement, the agencies will conduct parallel investigations into common targets, share information on organized crime syndicates and discuss which jurisdictions should prosecute specific cases. The DOJ said the authorities have already identified overlapping cases and plan an in-person disruption operation with private-sector partners in London in early October.

The cross-border pact comes as reported US losses from crypto investment fraud continue to climb. Losses reported to the FBI’s Internet Crime Complaint Center rose 89% from $4.57 billion in 2023 to $8.65 billion in 2025, according to the DOJ. 

Advertisement

International efforts target crypto scam compounds

The agreement expands the Scam Center Strike Force, which US Attorney Jeanine Ferris Pirro launched in November 2025 to target Chinese organized crime networks operating scam centers primarily in Southeast Asia. Their schemes include crypto investment fraud and are often linked to human trafficking and money laundering, according to the DOJ. 

The task force includes the FBI, US Secret Service, Internal Revenue Service Criminal Investigation, Homeland Security Investigations and Justice Department offices. It also works with the US Treasury and State departments and private companies to disrupt scam operations and recover victims’ funds.

Related: Chinese newspaper warns of Bitcoin extortion scam using its name

International authorities have coordinated raids against similar operations. On April 29, the DOJ reported a Dubai police-led operation involving the FBI and China’s Ministry of Public Security, which resulted in 276 arrests and the closure of at least nine crypto scam centers. Six people were charged over schemes that allegedly used fake crypto investment platforms to solicit deposits from victims. 

Advertisement

Governments in Southeast Asia have also pursued tougher domestic measures. On May 15, Myanmar’s military government had released draft legislation proposing sentences ranging from 10 years to life in prison for digital currency fraud, with the death penalty possible when people coerced into working at scam centers were killed. 

On July 28, Parliament approved the bill, though presidential assent had not been confirmed.

Magazine: Recovery specialists crack $1B crypto wallet… but find just $10

Source link

Advertisement
Continue Reading

Crypto World

Bitcoin back above $81,000 as hike odds fade, Zcash leads with 15% jump

Published

on

Bitcoin back above $81,000 as hike odds fade, Zcash leads with 15% jump


Every major token gained on Friday as traders cut bets on a September Federal Reserve rate increase to a coin flip, though most of the majors are barely changed on the week.

Source link

Continue Reading

Crypto World

Remixpoint Cuts ETH, XRP Exposure After Market Review, Keeps 1,506 BTC in Treasury

Published

on

Remixpoint made ¥117.8 million ($746,800) from selling its altcoin holdings, and the gain is slated for recognition as business-segment revenue in the second quarter of fiscal 2027.

The company said its decision to dispose of all its altcoins and become a Bitcoin-only treasury was based on market conditions, the assets’ risk-return profiles, and its financial strategy.

Dogecoin Sale Ends in Loss

According to the official document shared by Remixpoint, Ethereum generated the largest profit at ¥60.2 million ($381,000), followed by Solana at ¥49.3 million ($312,000) and XRP at ¥11.5 million ($72,900). Dogecoin was the only outlier as the meme coin produced a ¥3.3 million ($21,000) loss.

Remixpoint still holds roughly 1,506 BTC, worth more than $115 million. Its Bitcoin strategy has also produced additional income through lending. The company reportedly earned 14.92 BTC in fees between February 24 and August 31. Those fees were valued at ¥164.2 million ($1 million) using the relevant month-end exchange rates.

Advertisement

The funds generated from this sale are being considered to expand assets in growth areas, including grid-scale battery storage, strengthen its financial foundation, and pursue other measures that contribute to increasing corporate value and shareholder value.

The Japanese energy consulting firm secured around ¥31.5 billion in financing back in July 2025, the proceeds of which were earmarked entirely for BTC purchases. Remixpoint had set an initial target of reaching 3,000 BTC.

During the same period, Remixpoint had also announced that its President and CEO would receive his full executive compensation in Bitcoin. The move made it the first listed company in Japan to adopt BTC-only compensation for its top executive. The company linked the decision to its goal of “shareholder-oriented management.” By paying the CEO in Bitcoin, Remixpoint said management would share economic risks and rewards with shareholders.

Fresh Pressure

Bitcoin has struggled to break above $79,000 over the past few days. The crypto asset briefly fell to around $76,500 earlier this week, its lowest level since August 23. It has since recovered and was trading near $77,700 on Thursday. Ethereum also faced pressure, falling 3.5% over the past week to around $2,400.

Advertisement

Meanwhile, Solana recovered slightly and was trading just above $100. Dogecoin also saw a small rebound. The meme coin gained 1.13% over the past 24 hours, which pushed its price to $0.083.

The post Remixpoint Cuts ETH, XRP Exposure After Market Review, Keeps 1,506 BTC in Treasury appeared first on CryptoPotato.

Source link

Advertisement
Continue Reading

Crypto World

U.S. banking agency gives blockchain bank OpenReserve initial OK to operate

Published

on

Morgan Stanley's infrastructure partner Zerohash rebuffed in pitch to be U.S. trust bank


The Office of the Comptroller of the Currency granted a provisional charter to the new full-service bank, adding it to the growing mix of crypto-native institutions.

Source link

Continue Reading

Crypto World

Adobe Names Anil Chakravarthy CEO But AI Fears Are Impacting the Stock

Published

on

Adobe shares are feeling the heat.

Adobe (ADBE) named Anil Chakravarthy as its next president and CEO on Thursday. He replaces Shantanu Narayen, who is stepping down after 18 years as AI concerns weigh on Adobe’s stock.

Narayen will become executive chair and support Chakravarthy through the handover, which takes effect Dec. 1. Chakravarthy will also join Adobe’s board at that time.

The Leadership Handoff

Chakravarthy most recently led Adobe’s customer experience orchestration unit and its worldwide field operations. He joined Adobe nearly seven years ago after serving as chief executive of Informatica, an enterprise data management company. That company had partnered with Adobe under Narayen.

“Adobe’s opportunity ahead is limitless with our track record in creating new market categories and world-class products. Anil is an experienced transformational leader who leads with values, integrity and a deep knowledge of our business.”

Shantanu Narayen, Adobe’s outgoing CEO, in a statement

Advertisement

“A lot of the reason I came was the opportunity to work with him and work with the leadership team at Adobe.”

Anil Chakravarthy, Adobe’s incoming CEO, in a 2021 interview with CNBC

In contrast, David Wadhwani announced he will leave Adobe after leading its creativity and productivity business for nearly five years.

Observers once viewed him as a top CEO contender for his role in Adobe’s bid to acquire design firm Figma. Regulators forced the companies to scrap that deal in 2023.

Why Adobe Stock Keeps Falling

The CEO change comes as Adobe shares remain under pressure. The stock fell 25% in 2024 and another 21% in 2025, and it is down 18% so far in 2026. Shares slipped roughly 2% in extended trading following Thursday’s announcement.

Advertisement
Adobe shares are feeling the heat.
Adobe shares are feeling the heat. Image Source: Trading View

Meanwhile, the decline mirrors a wider retreat among software stocks slumping on AI fears. Investors worry generative AI tools could erode demand for subscription software.

Software peers have faced similar pressure as free or low-cost AI tools threaten legacy subscription models.

However, whether Chakravarthy can reverse the trend depends on Adobe’s own AI tools. He will need to show they can outpace cheaper rivals starting in December.

The post Adobe Names Anil Chakravarthy CEO But AI Fears Are Impacting the Stock appeared first on BeInCrypto.

Source link

Advertisement
Continue Reading

Crypto World

AMC CEO blasts Robinhood for stock token, putting synthetic shares in spotlight

Published

on

AMC CEO blasts Robinhood for stock token, putting synthetic shares in spotlight


Adam Aron said AMC has no connection to Robinhood’s tokenized shares, reviving questions around how stocks are brought onchain.

Source link

Continue Reading

Crypto World

AI Regulation Showdown: Zuckerberg Wants Speed, Sanders Calls for a Pause

Published

on

AI Regulation Showdown: Zuckerberg Wants Speed, Sanders Calls for a Pause

Meta CEO Mark Zuckerberg and Senator Bernie Sanders staked out opposite ends of US AI regulation on Thursday. Zuckerberg called a national regulator flawed, while Sanders moved to ban advanced AI.

Those two positions now bracket the fight in Washington. One camp wants industry to police itself while the other wants the government to stop building.

Zuckerberg Says AI Regulation Would Hand China the Lead

Trump called Zuckerberg the week of August 17, POLITICO reported Thursday. Zuckerberg opposed a proposed watchdog modeled on the Financial Industry Regulatory Authority (FINRA).

FINRA polices US brokerages and is funded by the firms it oversees. The AI version would test frontier models for risk before release. Google DeepMind chief Demis Hassabis popularized the idea in July.

Advertisement

Zuckerberg had already argued that superintelligence should reach everyone rather than a few labs.

“Any policy that slows American model releases … could add significant risk to American leadership while letting foreign models race ahead,” Zuckerberg said in August.

Sanders Sets the Bar at Human Level

Sanders and Representative Greg Casar announced the Ban Artificial Superintelligence Act on Thursday. It would outlaw systems that match or exceed human cognitive performance.

That bar sits lower than the name suggests. Matching human performance would trigger the ban.

The bill would also freeze advanced AI work until a new federal regulator writes rules. Violators face up to 20 years in prison.

Advertisement

Sanders has pressed Congress on AI before without moving legislation.

“The future of humanity cannot be left in the hands of a handful of Big Tech oligarchs,” Sanders said in a statement.

Zuckerberg did not kill the proposal. Officials are still weighing the FINRA-style body against a voluntary industry group. Adviser David Sacks favors the lighter option and has dismissed AI safety fears as storytelling.

Both camps now accept some kind of referee. The fight is over whether anyone stops building while it gets built.

Advertisement

The post AI Regulation Showdown: Zuckerberg Wants Speed, Sanders Calls for a Pause appeared first on BeInCrypto.

Source link

Advertisement
Continue Reading

Crypto World

Lululemon Stock Drops 18% to 8-Year Low After Third Guidance Cut

Published

on

Lululemon Stock Drops 18% to 8-Year Low After Third Guidance Cut

Nasdaq-listed Lululemon Athletica (LULU) stock dropped 18% in after-hours trading on September 3. Shares fell to under $100 after the company’s third guidance cut of 2026 overshadowed a profit beat.

The decline pushed shares to their lowest level in roughly eight years, below the 52-week low. LULU now trades about 80% under its all-time high of $511.29, set in December 2023.

Lululemon’s Third Guidance Cut of the Year

Lululemon has trimmed its full-year outlook three times since March. Each cut followed a quarter that beat earnings estimates but missed on sales.

Lululemon has been struggling for the past 5 years. Image Source: Trading View

March guidance called for $11.35 billion to $11.50 billion in revenue. June guidance was cut to $11.00 billion to $11.15 billion. September guidance now stands at $10.35 billion to $10.50 billion.

Second-quarter revenue fell 4% year over year to $2.42 billion, missing forecasts. Comparable sales dropped 10% globally and 12% in North America.

Advertisement

Lululemon Under Pressure

The repeated cuts have coincided with a turbulent year for the brand. Founder Chip Wilson waged a proxy fight against the board, and former chief executive Calvin McDonald departed in January.

In May, a Great Wall of China event featured a drum mistaken for a Japanese instrument, sparking backlash. Rivals Alo Yoga and Vuori have continued to take share in North America.

Interim co-chief executive and chief financial officer Meghan Frank pointed to reputational damage as a factor behind the latest slowdown.

“We faced negative commentary in the media and social channels, which impacted traffic and softer than planned response to some new product launches.”

(Meghan Frank, interim co-CEO and CFO, Lululemon Athletica)

Advertisement

Incoming chief executive Heidi O’Neill starts next week and inherits a turnaround plan that has yet to show results. Lululemon guided third-quarter revenue down 10% to 11% year over year.

The post Lululemon Stock Drops 18% to 8-Year Low After Third Guidance Cut appeared first on BeInCrypto.

Source link

Advertisement
Continue Reading

Trending

Copyright © 2025