06:28 AM EDT, 06/06/2025 (MT Newswires) -- Lululemon Athletica ( LULU ) shares tanked early Friday as the athletic apparel and footwear company slashed its full-year earnings outlook despite reporting fiscal first-quarter results above market estimates.

Earnings are now set to come in between $14.58 and $14.78 per share for fiscal 2025, the company said late Thursday, down from its previous guidance of $14.95 to $15.15. The current consensus on FactSet is for $14.72. The stock tumbled 21% in the most recent premarket activity.

Lululemon continues to anticipate revenue to be in a range of $11.15 billion to $11.3 billion for the ongoing fiscal year, representing annual growth of 5% to 7%, while the Street is looking for $11.23 billion.

"The current tariff paradigm has brought uncertainty into the retail environment, as consumers try to assess the impact they will have on daily life," Chief Executive Calvin McDonald said during an earnings call, according to a FactSet transcript. "As businesses evaluate these impacts as well, I believe we are better positioned than most to navigate the near term while also maintaining our focus on investing in our growth potential over the long term."

US President Donald Trump said in a social media post Thursday that he had a call with Chinese President Xi Jinping that "resulted in a very positive conclusion for both countries." Tensions between Washington and Beijing were recently renewed after the two accused each other of violating the preliminary trade deal reached last month.

The athletic apparel retailer has been assessing measures to mitigate the impact of increased tariff rates, including "prudently managing expenses" and "evaluating our position in the marketplace related to pricing," McDonald said on the call. The company aims to continue to be "very intentional" with its pricing strategy, the CEO added.

"We are planning to take strategic price increases, looking item by item across our assortment as we typically do, and it will be price increases on a small portion of our assortment, and they will be modest in nature," Chief Financial Officer Meghan Frank told analysts. "And then on the sourcing side, we are also pursuing some efficiency actions there, some of which will impact the second half of this year."

Lululemon projects EPS to be at $2.85 to $2.90 for the second quarter on a revenue range of $2.54 billion to $2.56 billion. The Street's current forecast is for EPS of $3.03 and sales of $2.55 billion.

For the three months through May 4, the company's net income rose to $2.60 from $2.54 the year before, ahead of the average analyst estimate of $2.58. Revenue grew to $2.37 billion from $2.21 billion last year, topping the Street's $2.36 billion view. Sales in the Americas gained 3%, while international revenue climbed 19%.

Comparable sales ticked up 1% year on year, but fell short of the market's expectation for a 4% increase. Same-store sales decreased 2% in the Americas and advanced 6% internationally.

"We achieved growth across channels, categories, and markets, including the US, reflecting the continued strength and agility of our business model," McDonald said in the earnings release. "As we navigate the dynamic macro environment, we intend to leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us."