Lululemon Athletica Q1 Profit Declines On Higher Taxes - Quick Facts

(RTTNews) - lululemon athletica inc. (LULU) reported first-quarter net income of $18.98 million or $0.13 per share, compared to $47.28 million or $0.32 per share, last year. Income before provision for income taxes was $71.44 million, compared to $67.39 million.

Excluding the one-time adjustment, earnings per share were $0.34 in the first quarter of fiscal 2014.

On average, 33 analysts polled by Thomson Reuters expected the company to report profit per share of $0.32 for the quarter. Analysts' estimates typically exclude special items.

Net revenue increased 11% to $384.6 million from $345.8 million. Analysts expected revenue of $381.24 million for the quarter. Total comparable sales on a combined basis increased 1% for the first quarter on a constant dollar basis.

For the second quarter of fiscal 2014, the company expects its net revenue to be in the range of $375 million to $380 million based on a total combined comparable sales decrease in the low to mid single digits on a constant-dollar basis. Earnings per share are expected to be in the range of $0.28 to $0.30 for the quarter. The company noted that the guidance does not reflect the potential repurchase of shares. Analysts expect the company to report second-quarter profit per share of $0.36 on revenue of $387.19 million.

For the full fiscal 2014, the company now expects net revenue to be in the range of $1.77 billion to $1.80 billion based on a total combined comparable sales increase in the low single digits on a constant-dollar basis. Earnings per share are expected to be in the range of $1.50 to $1.55 for the full year, or $1.71 to $1.76 normalized for the one-time tax adjustment related to the planned repatriation. The company noted that the guidance does not reflect the potential repurchase of shares. Analysts expect the company to report fiscal 2014 profit per share of $1.89 on revenue of $1.80 billion.

Laurent Potdevin, lululemon's CEO, stated: "We are pleased that Q1 results were slightly ahead of our expectations. 2014 is very much a transitional year for lululemon, and we are on track with the improvements we have set out to achieve. Despite a reduced outlook, I am confident that the work we are doing today will only enhance our premium positioning as we continue to lead as the market innovator."

lululemon athletica also announced that Chief Financial Officer John Currie has notified the company of his intent to retire by the end of the fiscal year. The company said it will engage a leading executive search firm to initiate an open and comprehensive search for Currie's replacement.

The company announced that its board has approved a stock repurchase program to buy back up to $450 million of common shares in the open market at prevailing market prices. The timing and actual number of common shares to be repurchased will depend upon market conditions and other factors, in accordance with Securities and Exchange Commission requirements, the company said.