UPDATE: Lululemon Issues Weak Outlook, Shares Tumble

Lululemon Athletica (NASDAQ: LULU) reported better-than-expected first-quarter results and issued a weak second-quarter forecast. The company also announced a $450 million share buyback program. Lululemon's quarterly profit fell to $19 million, or $0.13 per share, versus a year-ago profit of $47.3 million, or $0.32 per share. Excluding certain items, it earned $0.34 per share.Its revenue climbed 11% to $384.6 million from $345.8 million. However, analysts were projecting earnings of $0.32 per share on revenue of $381.7 million. Its total same-store sales increased 1%, while direct to consumer revenue rose to $66.0 million.The company's press release offered the following comment from Laurent Potdevin, lululemon's CEO:"We are pleased that Q1 results were slightly ahead of our expectations. 2014 is very much a transitional year for lululemon, and we are on track with the improvements we have set out to achieve.”Lululemon expects Q2 net earnings of $0.28 to $0.30 per share on net revenue of $375 million to $380 million. However, analysts were expecting earnings of $0.36 per share on sales of $387.1 million. For the full fiscal 2014, Lululemon now projects adjusted earnings of $1.71 to $1.76 per share on net revenue of $1.770 billion to $1.800 billion. Mr. Potdevin added, "Despite a reduced outlook, I am confident that the work we are doing today will only enhance our premium positioning as we continue to lead as the market innovator."Lululemon also announced the retirement of its CFO John Currie by the end of the fiscal year.Lululemon shares fell 11.30% to $39.50 in pre-market trading.