Lululemon shares have plunged by more than 20% after it cut its annual profit forecast, as the company navigates tariffs and fears about the US economy slowing.
“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.
The athleisure brand joins a growing list of big companies to warn about the impact of US President Donald Trump’s trade policies.
The Trump administration’s approach to tariffs has triggered concerns over rising prices and a weakening economy.
“We are planning to take strategic price increases… on a small portion of our assortment, and they will be modest in nature,” Lululemon’s finance chief Meghan Frank said.
The company also said it will cut costs and negotiate with its vendors.
Last year, 40% of its products were made in Vietnam, and 28% of its fabrics…
