Lululemon Athletica Inc (NASDAQ:LULU) shares head south on reporting weaker-than-expected results for its first quarter on Thursday.
The Vancouver-based athletic wear maker revealed Thursday net revenue was $652.0 million in the first quarter, a decrease of 17% compared to the first quarter of fiscal 2019. On a constant dollar basis, net revenue decreased 16%.
Direct to consumer net revenue increased 68%, or increased 70% on a constant dollar basis. Direct to consumer net revenue represented 54.0% of total net revenue compared to 26.8% for the first quarter of fiscal 2019.
Gross profit was $334.4 million, a decrease of 21% compared to the first quarter of fiscal 2019. Gross margin was 51.3%, a decrease of 260 basis points compared to the first quarter of fiscal 2019.
Income from operations was $32.8 million, a decrease of 75% compared to the first quarter of fiscal 2019.
The Company ended the first quarter of fiscal 2020 with $823.0 million in cash and cash equivalents and the capacity under its committed revolving credit facility was $398.2 million.
Lululemon had $576.2 million in cash and cash equivalents at the end of the first quarter of fiscal 2019. Inventories at the end of the first quarter of fiscal 2020 increased 41% to $625.8 million compared to $443.0 million at the end of the first quarter of fiscal 2019. The Company ended the quarter with 489 stores.
LULU shares slid $2.52 to $305.60
