Lululemon stock plunges in historic rout as tariffs eat away at its profit

By Jordan Valinsky, CNN

New York (CNN) — Lululemon’s stock is on pace for one of its biggest routs in history after the athleisure maker warned that tariffs will dent its profit.

The company cut its full-year guidance citing a “dynamic macroenvironment” that includes a decline in visits to its US stores, the impact of tariffs and and rising competition from other brands, such as Vuori and Alo.

Lululemon ( LULU ) shares plunged more than 17% Friday, on pace for the stock’s worst day in more than five years and its fourth-worst day ever.

“The current tariff paradigm has brought uncertainty into the retail environment,” said CEO Calvin McDonald on a call with analysts Thursday, adding that Lululemon is “definitely not happy where the growth is in the US.”

Following the likes of Nike