Shares of Lululemon Athletica (LULU) plummeted 18.68% in after-hours trading on Thursday following the company's first-quarter earnings report and reduced annual profit forecast. The athletic apparel retailer's stock tumble came as investors reacted to a mixed quarterly performance and disappointing guidance that pointed to slowing growth and economic pressures.

While Lululemon's Q1 revenue of $2.4 billion surpassed analyst expectations of $2.36 billion, the company's earnings per share of $2.60 merely met consensus estimates. More significantly, the company slashed its full-year earnings guidance, now projecting EPS between $14.58 and $14.78, down from the previous forecast of $14.95 to $15.15. This reduction was attributed to waning consumer demand amid increased competition and economic uncertainty triggered by the Trump administration's trade policies.

Adding to investor concerns, Lululemon provided weaker-than-expected guidance for the second quarter. The company anticipates Q2 EPS of $2.85-$2.90 on revenue of $2.535-$2.56 billion, falling short of analyst projections of $3.29 per share on $2.56 billion in revenue. This outlook suggests a significant deceleration in growth compared to recent quarters, heightening worries about the company's near-term prospects.

The disappointing forecast comes as Lululemon grapples with a challenging retail environment characterized by cautious consumer spending and the ongoing impact of tariffs on imports from China and Mexico. As the company navigates these headwinds, investors will be closely watching for signs of how effectively it can maintain its market position and drive growth in an increasingly competitive athleisure market.