Lululemon reported a strong fourth quarter where revenue increased 13%. But the popular active-wear retailer had a modest outlook for this year based on uncertainty about tariffs and lower consumer spending. Its stock dropped on the lower-than-expected guidance.

Lululemon stock fell 15% in afternoon trading after CEO Calvin McDonald said consumers are beginning to spend less in response to increased fears about the US economy.

Lululemon beat Wall Street expectations for fiscal fourth-quarter earnings and revenue, but issued 2025 guidance that disappointed analysts.