Lululemon Athletica forecast annual revenue and profit below estimates on Thursday as the lack of consumer appeal for its newer styles has been pushing customers to look for products from competitors such as Alo Yoga and Vuori.

The company’s shares, which have fallen 10% so far this year, fell about 6% in extended trading.

Lululemon’s efforts to refresh its product lineup have been falling short of keeping up with rising competition from other brands, whose newer styles are more appealing to consumers.

After struggling to resonate with customers for a while, the Canada-based company has introduced products, including Define cropped jackets and Align tank tops, to bring in consumers, especially younger people, who often are on the hunt for trendier items.

The company now expects its fiscal 2025 revenue to be between $11.15 billion and $11.30 billion, compared with the analysts’ average estimate of $11.31 billion, according to data compiled by LSEG.

Lululemon also expects annual diluted earnings per share of $14.95 to $15.15, compared with the average analysts’ estimate of $15.30 per share.

While the company did not specify what impacts it would see from tariffs, it said in its annual report that its business could be negatively affected by them.

However, it posted quarterly revenue of $3.61 billion, beating estimates of $3.57 billion owing to stronger holiday sales.

It earned $6.14 per share for the quarter, compared with estimates of $5.85 apiece.

While Lululemon benefited from a surge of shoppers purchasing its pricey apparel and footwear during the holiday season, muted spending amid rising inflationary concerns has been hitting its sales.

Comparable sales rose 3% for the quarter, missing a mean estimate of a 4% rise after coming in flat in the Americas, while in China, the company’s comparable sales rose 26%, compared with a 7% increase a year ago.

Sequential declines in the Americas, its largest market, overshadowed benefits from sales in China, which accounted for about 10% of Lululemon’s revenue in 2024.

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