Apparel retailer Lululemon Athletica on Thursday forecast annual revenue and profit below expectations, pressured by sluggish demand for the company’s premium athleisure and accessories.

Shares of the Vancouver, Canada-based company fell 9 percent in extended trading.

Consumers are reducing their spending on luxury clothing and accessories, a trend evident among several US retailers such as Foot Locker, which has noted a decline in demand.

The premium apparel retailer forecast a profit in the range of $14.00 to $14.20 per share for fiscal 2024, compared to expectations of $14.13 per share.

Lululemon projected fiscal 2024 revenue to range between $10.70 billion and $10.80 billion. Analysts on average had expected $10.90 billion.

Reporting by Annett Mary Manoj; Editing by Ravi Prakash Kumar

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