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Lululemon Q1 plunges; CFO to retire

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.

 

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