Lululemon shares dive as retailer slashes annual sales, profit forecasts, signalling slowdown in demand

Lululemon’s worrying forecast comes when U.S. holiday spending is expected to see its steepest drop since the COVID-19 pandemic.

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

Shares of the company fell about 14 per cent after the closing bell.

The sportswear maker’s new products have failed to spark a wave of buying from consumers grappling with inflation and the Trump administration’s volatile trade policy.

Lululemon’s dour forecast for the second half of the year 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