Lulu "LEMON"?

Not sure if this brand has staying power, yet I continue to see lot's of women doing their shopping in ..... I think this brand might be having an identity crisis - anyone agree or disagree?

Lululemon shares slip as profit drops
The Canadian Press

VANCOUVER — Fashion retailer Lululemon Athletica Inc. stock fell 11 per cent in early trading Thursday after the yoga wear retailer reported a drop in first-quarter net income and said it expects more of the same lies ahead.

Lululemon's stock fell $1.55 to $15.27 on the Toronto Stock Exchange in early trading after the announcement.

The company said its net income in the three months ended May 3 was $6.5-million, down 23.5 per cent from the same time last year

The first-quarter profit amounted to nine cents per diluted share, down from $8.5-million or 12 cents per share a year earlier.

Lululemon's outlook calls for earnings in its fiscal second quarter to be in a range of eight to nine cents per share — about the same as in the first quarter.

The reduced profitability comes as Lululemon's revenues increase but margins fall.

In the first quarter, net revenue rose to $81.7-million, up six per cent from $77.0-million a year earlier. Lululemon says second-quarter revenue will be even higher at between $85-million to $90-million.

But gross profit as a percentage of net revenue decreased to 42.8 per cent in the first quarter, down from 53.4 per cent a year before.

Income from operations was $9.9-million, or 12.1 per cent of net revenue — down from $11.9-million or 15.5 per cent of net revenue a year before.

Lululemon's outlook calls for comparable-store sales to decline in the second quarter compared with the year-earlier period.