(Reuters) -Lululemon Athletica's ( LULU ) shares fell 13% on Friday after the sportswear maker gave downbeat annual forecasts at a time when the broader apparel space battles an uneven consumer demand environment.

The company 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 already-weak consumer confidence.

"So the economic conditions are not ideal ... Lululemon has felt some impact from the rising competition in the industry, at least in the United States," Morningstar analyst David Swartz said.

Lululemon has been losing market share to companies such as Alo Yoga and Vuori as it takes longer to rebuild its brand image despite launching a wide array of new clothing.

"Newness initiatives have not been enough to offset pressure in a tough macro," Truist Securities analyst Joseph Civello said.

Some analysts have said there is growing demand for Lululemon's Glow Up tank tops and Daydrift high-rise trousers, but an uncertain environment has dimmed hopes of a rebound.

"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 during a post-earnings call on Thursday.

At least 12 analysts trimmed their price targets on Lululemon's shares, with Truist being the most bearish cutting by $80 to $380.

The company's shares were trading at $296. They lost roughly a quarter of their value in 2024.

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, according to LSEG data.

For Lululemon the theme still remains about fading growth, Jefferies analyst Randal Konik said.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)