Lululemon adds to warnings about consumer spending as stock tanks 15% on weak revenue outlook amid tariff uncertainty

• Mul – Lulhemon Reported a strong fourth district where income increased by 13%. But the retailer who was a popular active seller had a modest prospect of this year based on the uncertainty of tariffs and low consumers. Its shares have decreased lower than expected guidance.

The exclusive quarter of Lululon was mainly related to the “news” during the “Active Clothing” brand earnings, but the future does not seem very bright for the company.

He said that the introduction of new products helped a higher foot traffic and interest in the brand, which led to 13% in the fourth quarter Income growth Up to $ 3.61 billion beats Wall Street expected by $ 3.57 billion, according to analysts research ULGA number of brand has launched several new lines LightTo be in style Turn awayand MilmermerThat everyone helped to “drive guests’ loyalty, repeat purchase and long-term value,” Macdonald said.

But Like many other retailersLululemon had a lower than the expected prospect due to the hot word at the moment. Uncertainty. Really, Wells Fargo: Analysts wrote Friday that they believed that investors were more interested in Lulul’s “alleged” prospect.

McDonald has said that the company has conducted a research at the beginning of this month on the consumer mood this month, and it was found that “consumers spend less due to inflation and the economy.”

It follows from similar warnings from the best US Airlines, which is a milder demand for lululemon rival. Nika and retail giant Walmartthat says Customers show “stressed behaviors.”

It is also consistent with other consumer mood surveys this week. Consumer confidence hit 12-year low, The conference council reported Tuesday and Michigan University Research provided by the consumer Issued by 11% this week.

Low consumer confidence in Lululemon has “manifest itself” in the United States during this quarter, while scoring McDonald said that “we control what we can control.”

For the first quarter, the company sees $ 2.34 billion worth of $ 2.36 billion in Wall Street with $ 2.39 billion.

Lululon’s chief financial leader, Meghn Frank stated that during earnings “tariff brains” could lead to 2025 slow sales. Expectations of analysts $ 11.31 billion.

On those rumors, the shares of Lululecon has fallen about 10% Advanced trading. The shares fell from more than 15% to $ 293.66 in mid-morning, which is also 31% decline in late January.

Lululemon did not respond immediately FortuneWith a request to comment.

Lululon’s Hard Macro Environment for 2025

Other investment banks including Morgan StanleyTo be in style Piper Sandler:and Raymond James: According to Retail Options Tracker, they reduced their ratings for Lululemon JarvisA number of Jefferi analyst Randy conic said Yahu Finance: “The topic remains that growth is fading.”

Although Bernstein analysts have called Lululemon for the sports clothes of “Market Leader”, they say that the company is “especially vulnerable for macro weaknesses” that can damage the foot of this quarter.

Friday Fresh Economic Data emphasized further challenges that companies love Lulino face. Last month, Federal Reserve’s preferred inflation measure is higher than in the previous month, 2.8%, peak scenes by 2.7%.

At the same time, consumer expenditures increased by 0.4%, even as personal income from previous predictions, even as personal income. This caution raised the personal savings rate by 4.6%, the highest since June 20, 2024.

Meanwhile, Lululemon has grown More and more common in Chinapurely income roughly 40% growth during the fourth quarter. This year, Lululemon plans to open 40 to 45 stores, Frank, most of whom will be in China.

But the rapidly developing challenge brands are placed in the area of ​​active wear “Epic Showdown:“For the industry this year, according to the November report Fashion business aeration of McKinsey: & Co.

“2025 is most likely time to calculate for many brands,” the report said. This year’s prospect “seen in 2024.

Lululemon plans to release more product lines. One of them can apply Workers who return to the officeA number of companies will present a new Fabric called “Lululinen”, which has the look and feeling of linen, but a sense of sportswear.

But “as you are aware, the external environment remains dynamic, and continues significant uncertainty due to macro and geopolitical circumstances,” McDonald said. “This is stated that we continue to focus on what we can control.”

This story was originally shown Fortune.com