Yogawear retailer Lululemon Athletica Inc reported higher first-quarter profit on Thursday, but said growth in same-store sales would slow, sending its shares down in premarket trading.
While Lululemon is rapidly expanding in the United States, any sign recently that its growth might falter has spooked markets.
The Vancouver-based company said comparable store sales, a key measure for retailers, would grow in the "low double digits" in the current quarter. In the first quarter ended April 29, same-store sales climbed 25 percent on a constant-dollar basis, beating the company's forecast for a gain in the low 20s.
Lululemon shares fell 14.3 percent to $60.03 in premarket trading on the New York Stock Exchange.
The company said first quarter net income rose to $46.6 million, or 32 cents a share, from $33.4 million, or 23 cents, a year earlier. Net revenue jumped 53 percent to $285.7 million.
Analysts, on average, had expected earnings of 30 cents a share on revenue of $270.9 million, according to Thomson Reuters I/B/E/S.
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