Lululemon shares fell over 12% in after-hours trading Thursday after the company issued a weaker-than-expected full-year outlook.

While second-quarter earnings beat estimates at $3.10 per share, revenue of $2.53 billion slightly missed expectations.

The company blamed tariffs, projecting a $240 million hit to profits, and lowered full-year EPS guidance to $12.77–$12.97 versus $14.45 expected, with revenue forecast at $10.85–$11 billion versus $11.18 billion anticipated.

Same-store sales in the Americas fell 4%, and the company cited stale product offerings in its lounge and social categories as a key issue.

CEO Calvin McDonald said Lululemon plans to revamp its product range, increasing new styles and improving design speed to drive growth, CNBC has reported.

Third-quarter guidance also fell short of Wall Street expectations.