A “pivotal question” is whether the slowdown in the athleisure company’s U.S. business is temporary “or a sign of something more fundamental,” UBS says.

Lululemon Athletica late Thursday cut its profit forecast and said it planned to raise prices, as tariffs threaten the clothes company's supply chain. The maker of yoga pants and other athletic wear said it now expects earnings of $14.

Lululemon Athletica's shares fell 20% in premarket trading on Friday, as the maker of high-end leggings warned that tariff-related costs and uneven demand in key markets of North America and China will dent its profits this year.