Lululemon Athletica Inc.'s first-quarter net income plunged 60%, impacted by a one-time tax adjustment. Although its adjusted profit and revenue beat Wall Street's expectations for the quarter, the retailer lowered its full-year earnings forecast.
Lululemon said that CFO John Currie plans to retire by the end of its fiscal year (February 2015).
Lululemon earned $19 million for the period ended May4, down from $47.3 million in the year ago period. The quarter had a tax expense of $52.5 million, which included a non-recurring adjustment of $30.9 million for the planned repatriation of foreign earnings that will be used to fund a buyback program.
Revenue increased 11% to $384.6 million from $345.8 million. Same-store sales inched up 1%.
The earnings report came a day after Lululemon founder Chip Wilson said that he voted against the re-election of outside directors Michael Casey and RoAnn Costin. Wilson, saying that he believes board changes are needed to help increase shareholder value.