Lululemon Athletica’s shares plunged 20% due to weak holiday season demand and tariff costs. The company cut its 2025 forecasts and plans to innovate beyond bestsellers like Scuba and Dance Studio pants. Analysts predict ongoing economic uncertainty could further weaken demand. Brokerages slashed price targets, with shares trading at $164.49.

The U.S. sales struggle led Lululemon to focus on new markets like China amid competition from brands like Alo Yoga. Tariff pressures and home-market weakness could cost the company $240 million this year, potentially rising to $320 million by 2026. Second-quarter American sales fell 1%, while international sales rose 15%.

Lululemon’s forward price-to-earnings multiple is 13.82, lower than Nike’s 39.21. The company aims to adapt to tariff challenges and market shifts.

Read more at Yahoo Finance: Lululemon slides as weak US demand, tariff costs cloud holiday outlook