Rival Nike's shares also slipped 1%. Lululemon's U.S. sales have struggled amid rising competition from emerging niche brands such as Alo Yoga and Vuori, forcing it to shift its focus to new markets, especially China, to make up for sluggish demand at home. "It's all about whether this brand can bend without breaking under tariff pressure and home-market weakness," said David Bartosiak, analyst at Zacks Investment Research. Lululemon warned that U.S. levies on Vietnam and China, and the removal of the de minimis rule, would cost it $240 million this year, and could rise to $320 million in 2026. Second-quarter comparable sales for Lululemon's Americas segment, its largest, fell 1%, while international sales rose 15%. Lululemon's forward price-to-earnings multiple, a common benchmark for valuing stocks, is 13.82, well below Nike's 39.21, per data compiled by LSEG.