Lululemon profit rises, outlook disappoints

Lululemon Athletica Inc. (LLL-T73.32-0.19-0.26%) on Thursday offered a disappointing full-year profit outlook for its chain of trendy yogawear shops, offsetting a surge in quarterly earnings and sales, and leaving its shares little changed.

The Vancouver-based retailer’s profit in the three months ended Jan. 29 climbed 34 per cent, slightly more than expected, while sales in established stores rose 26 per cent.

The results were slightly ahead of a revised forecast the company had given in January after a stronger-than-expected holiday shopping season.

Even so gross profit margin tightened to 56.3 from 58.5 per cent a year earlier, due to higher raw material costs and discounting to reduce stocks of unsold merchandise. Inventory at the end of the quarter stood at $104.1-million, up from $57.5-million a year earlier.

Read Full Article from Globe and Mail

- Posted: 2012-03-22 10:10:53

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