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If the losses hold in Friday's session, it would mark the stock's worst day since Dec. 6.
Lululemon Athletica Inc. (LULU) shares fell over 10% in post-market trading on Thursday, after the athletics apparel company issued a dire outlook for its business amid pressures from U.S. import tariffs and weak demand.
If the price holds in Friday's session, it would mark the stock's worst day since Dec. 6. Retail sentiment slipped into negative territory soon after the company's earnings report.
"Consumers are spending less due to increased concerns about inflation and the economy. This is manifesting itself into slower traffic across the industry in the U.S.," CEO Calvin McDonald said on a post-earnings call.
The company expects its fiscal 2025 revenue to be between $11.15 billion and $11.30 billion, lower than a $11.31 billion estimate from LSEG/Reuters.
Expectation of diluted earnings of $14.95 per share to $15.15 per share also missed the estimate of $15.30 per share.
Management said the outlook includes a 20-basis-point hit from President Donald Trump's trade tariffs.
Lululemon's goods are primarily manufactured in Asia, including in Vietnam, Cambodia, and Sri Lanka.
Competitor Nike Inc. (NKE) also cited macro trends, including geopolitical tensions, tariffs, and currency fluctuations, when it forecasted a decline in quarterly revenue and profitability last week.
On Stocktwits, retail sentiment for the company's shares dropped to 'bearish' from 'bullish' and message volume shot up 1,337% from the prior day.
One user commented that they expect LULU shares to drop considerably as the markets open on Friday.
Another commented that the company's update is another sign that "this is a bear market."
LULU shares closed at $341.53 on Thursday, down 10.7% year to date.
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