Shares of Lululemon Athletica Inc. fell from the market opening Thursday after the yoga-focused clothing company reported weak first-quarter results and warned that sales would fall in the current quarter.
Lululemon stock fell $2.26, or 13.4 per cent, to $14.56 in TSX trading.
The company said revenue for the first quarter rose, but profit fell and sales-per-comparable store — a key statistic for retailers — also dropped.
The Vancouver-based company said profit for the 13 weeks ending on May 3 was $6.5 million US (nine cents a diluted share), down from $8.5 million (12 cents) a year earlier.
Revenue was $81.7 million, compared with $77 million a year earlier.
But comparable-store sales fell eight per cent, Lululemon said.
The sales gain of about $4.7 million was swamped by costs that surged by $10.8 million.
For the second quarter, the company said it expects a comparable-store sales drop "in the middle-single digits," compared with the second quarter of 2008. Revenue will be around $85 million to $90 million and share profit will be eight or nine cents, half the 18 cents reported in the 2008 second quarter.
"Given the troubled outlook for the economy in early 2009 when we began the quarter, we are pleased with the current pace of our business and our ability to continue to bring our customers through our doors to make full price purchases," chief executive officer Christine Day said in the company's news release.
The stock-price drop reclaims the gains made since June 3, when shares closed at $14.74 (Cdn). It was as low as $12.65 on May 22.
The 52-week range is $5.60 to $30.50.
The company went public at $18 US in July 2007.