Lululemon shares slide as tariffs and weaker sales take their toll

The Canadian company says the US levies and the ending of the so-called de minimis exemption will cost it about $240m (£178.4m) this year.

The policy had allowed companies to ship online orders worth $800 or less into the US without having to pay import duties.

The retailer slashed its outlook, forecasting sales for the next three months of between $2.47bn to $2.5bn, which was lower than analysts had expected.

The removal of the de minimis rule will have a "significant impact" on Lululemon's earnings as it will disrupt its US e-commerce shipments, the firm's chief financial officer Meghan Frank said in an earnings call.

In terms of sales, the company has seen "positive momentum" overseas but is "disappointed"

The firm is considering ways to soften the impact of tariffs

Lululemon's product cycles had "run too long" and had become "too predictable", missing out on new trends, he said.

The company said earlier this year that it would make "modest" price increases due to the rising costs.

The majority of Lululemon's products are made in Asian countries like China and Vietnam.

Clothing brands are among the businesses hit hardest

Lululemon faces increasing competition from lower-priced rivals like Vuori and Alo Yoga.

Its shares were more than 15% lower in extended trading in New York on Thursday.