Lululemon 1Q profit rises 40%, outlook disappoints
Vancouver, BC, Canada -- Lululemon Athletic Inc. reported Thursday that profit for the fiscal first quarter surged 40% to $46.4 million, compared with $33.4 million last year, but lowered second quarter and full-year forecasts have alarmed investors.
Revenue for the quarter surged 53% to $285.7 million, beating Wall Street’s expected $274 million, and same-store sales rose 25%. Online sales nearly tripled in the quarter.
However, Lululemon now forecasts revenue of $273 million-$278 million in the second quarter, which would substantially miss analysts’ predicted $289.2 million in revenue. The forecast for the full year also fell short of estimates.