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Lululemon's Q1 greater than expected but stock falls on slightly soft outlook

VANCOUVER - Lululemon shares dropped ten per cent in pre-market trade following the Vancouver-based fashion retailer issued a revised outlook that fell short of analyst estimates, offsetting quarterly results that were much better than expected.

The stock (TSX:LLL) (Nasdaq:LULU) was down ,

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Investors have also been willing to spend a premium price tag for Lululemon's shares as a result of its strong previous development, so any sign of a future slow-down is usually a concern.

Lululemon is now calling for just more than US$1.3 billion of revenue for the .

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First-quarter revenue rose to US$285.7 million - a 53 per cent raise from US$186.eight million a year earlier and nearly $12 million greater than the consensus estimate for the quarter.

Offsetting the constructive news was a slightly softer outlook for the rest of the year than analysts had anticipated.

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