Lululemon Profit Exceeds Estimates as High Fashion Boosts Sales

VANCOUVER, Canada — Lululemon Athletica Inc., the yogawear maker, boosted its full-year outlook and reported first-quarter profit that topped analysts' estimates as fashion-focused merchandise boosted sales.

Excluding some items, profit was 34 cents a share in the quarter ended May 3, the Vancouver-based company said in a statement Tuesday. The average of analysts’ estimates compiled by Bloomberg was 33 cents. The company forecast full-year diluted earnings per share of $1.86 to $1.91, a 1 cent increase in the range.

Chief Executive Officer Laurent Potdevin is complementing Lululemon's workout staples with products that place more emphasis on fashion -- like leggings with mesh insets and floral patterns -- in a bid to appeal to shoppers who wear athletic gear outside the gym. The retailer also is expanding internationally and broadening its collection of men's clothing.

Lululemon shares fell 3.6 percent to $61.52 in New York on Monday. The stock has gained 10 percent this year.

First-quarter net income rose to $47.8 million from $19 million a year earlier.

The retailer is chasing what it sees as a $1 billion opportunity in men’s apparel. Lululemon opened its first store for men in New York’s SoHo neighborhood in November, and the company is adding more space for the collection in existing stores to boost sales.

By Lindsey Rupp; editors: Nick Turner, Kevin Orland, Thomas Mulier.