Lululemon cut its profit forecast for the year, hurt by higher costs to mitigate US tariffs and as tepid demand for its latest products failed to draw away buyers from upstart athleisure rivals such as Vuori.

Lululemon Athletica’s shares slumped 22% in trading after the bell on Thursday.

“We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,” Lululemon said in a statement. 3

President Trump’s chaotic global tariffs have fanned fears that the economy is headed for stagflation, pushing even wealthier shoppers to prioritize essential purchases.

Companies are diversifying sourcing and increasing prices to mitigate any hit from tariffs, which are expect

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