(Reuters) -Lululemon Athletica cut its annual sales and profit forecasts on Thursday, hurt by increased competition and selective consumer spending in its pricey leggings and tank tops in North America.

The shares of the athleisure apparel maker, which have lost nearly half of their value so far this year, were down about 3% in trading after the bell.

Lululemon has seen a slower start to 2024 as sales moderate after years of strong growth, with persistent inflation prompting selective spending by shoppers.

Comparable sales rose 2% in the second quarter but missed expectations of a 6.05% increase, according to LSEG data, driven by a 3% decline in sales in Amercas.

The company also lost out on sales because it had to pull its newly launched "Breezethrough" leggings from its shelves and website within weeks of its July launch after customers complained about the fit, material and seams.

The hiccup with Breezethrough comes against the backdrop of Lululemon struggling to grow its sales due to lower stock of smaller sizes and color.

Foot traffic data from Placer.ai showed visits grew 3.7% between May and July, with the latter being the weakest month.

The forecast cuts also signal a tougher holiday sales in the face of slowing growth and higher competition from Alo, Vuori and Rhone, brands that have grown rapidly in recent years, analysts have said.

The company expects fiscal 2024 net revenue in the range of $10.38 billion to $10.48 billion compared with a prior forecast of $10.70 billion to $10.80 billion.

Earnings per share are now expected to be in the range of $13.95 to $14.15 from its previous forecast of profit between $14.27 to $14.47 per share.

(Reporting by Savyata Mishra in Bengaluru; Editing by Arun Koyyur)