Lululemon Q1 Profit Down, Sees Q2 EPS Below Market View; Lifts FY16 Forecast

(RTTNews) - Yoga wear maker Lululemon Athletica Inc. (LULU) reported Wednesday that its first-quarter net income declined to $45.34 million from last year's $47.81 million. Earnings per share were $0.33, compared to $0.34 a year ago. Excluding adjustments, earnings per share were $0.30 for the first quarter of fiscal 2016.

On average, 35 analysts polled by Thomson Reuters expected earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue increased 17% to $495.52 million from $423.54 million last year, or increased by 19% on a constant dollar basis. Analysts expected revenues of $487.67 million.

Total comparable sales, which includes comparable store sales and direct to consumer, increased by 6%. Comparable store sales increased by 3%.

Direct to consumer net revenue increased 17% to $97.6 millions.

Looking ahead, for the second quarter, the company expects earnings per share are to be in the range of $0.36 to $0.38 and net revenue to be in the range of $505 million to $515 million based on total comparable sales in the mid-single digits on a constant dollar basis.

Analysts expect earnings of $0.39 per share on revenues of $513.90 million for the quarter.

For the full fiscal 2016, the company now expects earnings per share in the range of $2.08 to $2.18, or $2.05 to $2.15 normalized for the tax and related interest adjustments.

Net revenues are now expected to be in the range of $2.305 billion to $2.345 billion based on total comparable sales in the mid-single digits on a constant dollar basis.

Previously, the company was projecting earnings per share of $2.05 to $2.15, and revenues of $2.285 billion to $2.335 billion for the year based on a total comparable sales increase in the mid-single digits on a constant dollar basis.

Analysts expect earnings of $2.16 per share on revenues of $2.34 billion for the year.