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

See Full Page