Lululemon slashes annual sales, profit forecasts amid demand, tariff woes

Lululemon Athletica slashed its annual revenue and profit forecasts on Thursday, signaling a slowdown in demand going into the crucial holiday season as consumers cut down spending, alongside tariff pressures. 

Shares of the company fell about 13% after the closing bell.
The sportswear maker’s new products has failed to spark a wave of buying from consumers grappling with inflation and the the Trump administration’s volatile trade policy.

Lululemon’s dour forecast comes at a time when U.S. holiday spending is expected to see its steepest drop since the pandemic as Gen Z shoppers in particular pull back on spending, according to a PwC survey. 

The outlook includes a tariff hit of about $240 million on gross margin, including mitigation efforts, pricing actions, current higher levels of tariffs on imports into the U.S. and the removal of the ‘de minimis’ exemption, the company said.

The yogawear firm now expects annual revenue between $10.85 billion and $11 billion, compared with its prior forecast of $11.15 billion to $11.30 billion.

It also forecast annual profit between $12.77 and $12.97 per share, compared with previous expectations of $14.58 to $14.78 apiece.