(Reuters) - Lululemon Athletica ( LULU ) cut annual profit forecast on Thursday, as consumer demand waned amid increased competition and a gradual economic slowdown triggered by uncertainty over the Trump administration's trade policy.

Shares of the company fell 12% in after-market trading.

Although Lululemon has been betting on its new product offerings to boost demand, it is still struggling to drum up sales as competitors, including Alo Yoga and Vuori, gain more traction.

This comes at a time when U.S. President Donald Trump's chaotic tariff implementation on all global trading partners has fanned fears that the economy is headed for tepid growth and stagflation, pushing customers to prioritize essential purchases and not splurge.

In March, Lululemon forecast downbeat annual targets due to the economic uncertainty amid Trump's erratic tariff decisions on imports from China and Mexico. This included a 20-basis-point hit from tariffs.

The company now expects annual profit between $14.58 and $14.78 per share, compared with previous expectations of $14.95 to $15.15.