Lululemon Athletica Inc. (LULU) saw its shares tumble 5.34% in pre-market trading on Friday, as investors reacted to the sweeping global tariffs announced by President Trump. The yoga-wear maker appears to be particularly vulnerable to the new trade measures, with analysts describing the company as being in the "tariff bullseye."

According to William Blair analyst Sharon Zackfia, the bulk of Lululemon's products are sourced from countries targeted with outsize tariffs. With 40% of its products manufactured in Vietnam (hit with a 46% tariff) and another 46% made in Cambodia, Sri Lanka, Indonesia, and Bangladesh (facing tariffs ranging from 37% to 49%), the company is facing a blended tariff rate of approximately 39% on its goods.

The impact of these tariffs could be significant for Lululemon. If the company were to fully pass on the cost to American consumers, it could result in price increases of 11% to 12% across its product line. However, analysts believe Lululemon is more likely to take a "surgical" approach to pricing, given its history of maintaining market share during previous supply chain crises. The estimated impact on profitability could lower gross margins by 720 basis points.

Adding to the negative sentiment, Bernstein has cut its price target for Lululemon from $405 to $350, although it maintains an outperform rating on the stock. Despite the challenges posed by the new tariffs, some analysts remain optimistic about Lululemon's prospects, citing its strong margins and affluent customer base as factors that could help the company weather the storm.