Lululemon Athletica Inc, which sells yoga-inspired athletic apparel, today (11 June) posted a 23.5% drop in first quarter profit and said it expects second quarter earnings to be flat. 

For the thirteen weeks to 3 May, the Vancouver based retailer said net income fell to $6.5m or $0.09 per share, from $8.5m or $0.12 per share in the same period last year.

Revenues increased 6% to $81.7m from $77.0m, with a 5% rise seen at company-owned stores where sales were $72.9m.

Same-store sales, however, fell 8% on a constant-dollar basis compared to the first quarter last year.

Gross profit as a percentage of net revenue dropped to 42.8% from 53.4%.

Christine Day, Lululemon's CEO said the company would continue to manage its long-term brand expansion, and was pleased with "our ability to continue to bring our customers through our doors to make full price purchases."

However, for the second quarter it expects comparable-store sales to fall in the middle-single digits on a constant-dollar basis, with net revenue in the range of $85m to $90m and earnings per share between $0.08 to $0.09.