Lululemon shares are off 14% after the yogawear maker lowered full year guidance and reported a drop in profit.
The Vancouver-based firm now sees full-year revenue of $US1.77 billion to $US1.8 billion, compared with earlier estimates for $US1.77 billion to $US1.82 billion.
They reported profits of $US19 million, or $US0.13/share, down from $US47.3 million, or $US0.32/share, a year ago.
Same-store sales climbed 1%.
The firm announced CFO John Currie, who’s been with the firm for seven years, would retire. CEO Christine Day was just replaced in January. Founder Chip Wilson tried unsuccessfully to oust two outside board members Wednesday, including new chairman Michael Casey. “Mr. Wilson, who owns 27 per cent of the company’s shares, said the directors were focusing on short term results ‘at the expense of product, culture and brand and longer term corporate goals,'” the Globe and Mail reported.
The firm also announced a share-repurchase program of up to $US450 million, to be funded through the repatriation of foreign earnings. The company recorded a $US30.9 million tax charge in the first quarter for the planned repatriation.