Lululemon Athletica 1Q profit drops 24 percent

Lululemon Athletica Inc. said Thursday that its fiscal first-quarter profit dropped 24 percent as consumers continued to tighten their spending, but the results beat analysts' estimates.

The Canadian athletic apparel maker earned $6.5 million, or 9 cents per share, compared with $8.5 million, or 12 cents per share, a year earlier.

Analysts expected net income of 8 cents per share, according to a Thomson Reuters poll. Analysts' estimates generally exclude one-time items.

Sales for the period ended May 3 grew 6 percent to $81.7 million from $77 million to surpass Wall Street's estimate of $74.2 million.

Sales at stores open at least a year, known as same-store sales, fell 8 percent. Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

The company expects second-quarter earnings in a range of 8 cents to 9 cents per share on revenue between $85 million and $90 million.

Analysts predict second-quarter profit of 11 cents per share on sales of $83.1 million.

The apparel maker anticipates a second-quarter same-store sales decline in the mid-single digits.

In premarket trading, Lululemon shares fell $1.02, or 6.7 percent, to $14.20.