Lululemon shares plummeted over 20% after the company lowered its annual profit forecast, citing economic uncertainty, inflation, and reduced consumer spending fueled by Trump-era tariffs. The athleisure brand, heavily reliant on Asian manufacturing (40% of products from Vietnam, 28% fabrics from China), plans modest price increases and cost-cutting measures to offset the impact of tariffs. This follows similar warnings from Adidas, Skechers, and Nike regarding increased costs and price adjustments due to US trade policies.

Prepared by Christopher Adams and reviewed by editorial team.