Lululemon Athletica said on Thursday that economic uncertainty was dampening demand for its pricey athleisure apparel and U.S. tariffs on imports from China and Mexico had squeezed its forecast for the year.

In a surprising turn of events, shares of Lululemon Athletica plummeted nearly 13 percent in premarket trading on Friday, following the sportswear giant's disappointing annual forecasts. This decline highlights the broader struggles within the apparel industry, particularly as consumer demand continues to wobble in an uncertain economic climate.

Lululemon reported a strong fourth quarter where revenue increased 13%. But the popular active-wear retailer had a modest outlook for this year based on uncertainty about tariffs and lower consumer spending.