Lululemon shares fell sharply on Thursday after the company warned over the impact on its business of US President Donald Trump's tariffs and his decision to close a duty-free loophole.
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.
