By Kelly Cloonan

Lululemon Athletica cut its full-year profit outlook as proposed tariffs threaten the company's supply chain.

The maker of yoga pants and other athletic wear on Thursday said it now expects earnings of $14.58 to $14.78 a share for the fiscal year, down from its prior outlook of $14.95 to $15.15. The company maintained its guidance for sales of $11.15 billion to $11.3 billion.

For the current quarter, the company expects per-share earnings of $2.85 to $2.90 and sales of $2.54 billion to $2.56 billion. Analysts expect earnings of $3.29 on a per-share basis and $2.56 billion in revenue.

The company is expected to face higher costs as a result of proposed U.S. tariffs on products from some of its largest sourcing bases, including Vietnam, Cambodia and Sri Lanka.

In its latest quarter, the company logged a profit of $314.6 million compared with $321.4 million a year earlier. Quarterly earnings of $2.60 a share topped the $2.58 a share that analysts polled by FactSet expected.

Revenue rose 7%, to $2.37 billion, above the $2.36 billion expected by analysts. Sales in the company's Americas segment increased 3%, while international sales rose 19%.

Same-store sales, which adjust for store openings and closings, rose 1%. Analysts had projected same-store sales to rise 4.1%.

Lululemon ended the quarter with 770 stores after adding three net new company-operated locations during the quarter.

Chief Executive Officer Calvin McDonald said customers responded well to the company's new products in the quarter. Lululemon plans to continue to invest in growth opportunities amid a dynamic macroeconomic environment, he said.

The Vancouver, British Columbia, company's shares fell about 14%, to $277.00, in after-hours trading on the Nasdaq.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 05, 2025 16:35 ET (20:35 GMT)

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