California Shop Owner Shot, Killed Over Pride Flag Outside Her Clothing Store

A woman who owns two clothing stores in California was shot and killed by a man who made derogatory comments about the pride flag hanging outside her business.

The fatal shooting happened Friday night in Lake Arrowhead, CA ... with law enforcement saying the suspect shot the shop owner, Lauri Carleton, because he didn't like the rainbow flag outside her clothing store.

Lauri owns the Mag.Pi store in Lake Arrowhead and another in Studio City ... and she's been a top fashion designer in Los Angeles for decades.

The San Bernardino County Sheriff says deputies arrived at the scene of Friday's shooting to find Lauri suffering from a gunshot wound ... and paramedics pronounced her dead at the scene.

The sheriff says the killer, armed with a handgun, fled on foot and he was tracked down about a mile away from the store ... with deputies shooting and killing him.

It's unclear if the fatal shooting will be investigated as a possible hate crime, though San Bernardino County Supervisor Dawn Rowe called the incident a "senseless act of hate and violence."

Rowe said in a statement ... "Everyone deserves to live free of hate and discrimination and practice their constitutional right of freedom of speech. Lauri was a remarkable member of the community and I send my deepest condolences to her family in this time of grief."

Lauri is survived by her husband of 28 years and their 9 children.

She was 66.