(Reuters) - Lululemon Athletica ( LULU ) shares fell nearly 13% in premarket trading on Friday, after the sportswear maker provided downbeat annual forecasts as the broader apparel space battles an uneven consumer demand environment.

The company, during its fourth-quarter earnings on Thursday, flagged that consumers were spending less due to increased concerns about inflation and the economy.

Lululemon joins a list of retailers rattled by uncertainty around U.S. President Donald Trump's erratic tariff decisions, which have shaken consumer confidence that was already weak with Americans being careful about shelling out more dollars on everything from groceries to nice-to-have items amid still-high inflation.

The company has also been losing market share to upstarts Alo Yoga and Vuori as it takes longer to rebuild its brand image despite launching a wide array of new clothing.

"Increased newness (is) not enough to offset macro-related slowdown," Needham analyst Tom Nikic said in a note.

According to Piper Sandler analysts, the debate continues to be whether the real issue is brand maturity and saturation in a competitive market for Lululemon.

Some analysts said there is a growing consumer enthusiasm for Lululemon's Glow Up tank tops and Daydrift high-rise trousers, but an uncertain environment dims hopes of a rebound in demand soon.

"We started this year with several compelling new product launches, but we also believe the dynamic macro environment has contributed to a more cautious consumer," CEO Calvin McDonald said on Thursday.

Lululemon's forward price-to-earnings ratio for the next 12 months - a benchmark for valuing stocks - was 21.92, compared with 31.51 for Nike and 25.67 for Adidas.

"Newness restored, but not guaranteed to save current deceleration in growth," said Jefferies analyst Randal Konik, adding that the theme still remains about growth fading.

Lululemon's shares were trading at $299 before the bell. They had fallen more than 25% in 2024.