Lululemon Plunges on CEO Departure; Q1 Revenue Tops Estimates

Shares of athletic apparel retailer

were trading down around 14 percent in Monday's after-hours trading session after the company said that CEO Christine Day would step down when a successor was named. Lululemon also released its fiscal first-quarter earnings results. In addition, the company lifted its outlook for fiscal 2013. For Q1, Lululemon reported net income of $47.3 million or $0.32 per share, compared to $46.6 million or $0.32 per share, in last year's corresponding quarter. This was in-line with Wall Street consensus EPS estimates. Revenue in the quarter was up 21 percent to $345.78 million versus $285.70 million last year. This came in ahead of analysts' consensus sales estimates of $341.07 million. Same-store sales in the first-quarter were up 7 percent. Looking ahead to Q2, Lululemon guided for EPS of $0.33 to $0.35 on revenue of $340 million to $345 million. This compares to current consensus EPS estimates of $0.33 on revenue of $328.88 million. For the fiscal year, the company lifted its outlook. Lululemon now expects EPS of $1.96 to $2.01 on revenue of $1.645 billion to $1.665 billion. Previously, the retailer guided for EPS of $1.95 to $1.99 per share on revenue of $1.615 billion to $1.640 billion. Wall Street analysts currently expect the company to report EPS of $1.99 on revenue of $1.64 billion for fiscal 2013.