Lululemon Profit Slips, Beats Street

VANCOUVER, CANADA (TheStreet) --Lululemon Athletica(LULU Quote) reported a 17% dip in its second-quarter earnings, but shoppers still seemed able to justify splurging on high-end yoga-inspired athletic wear.

In the just-ended quarter, the company earned $9.2 million, or 13 cents a share, compared with $11.1 million, or 16 cents a share, in the year-ago period. Analysts expected the company to earn 10 cents a share.

But overall sales jumped 14% to $97.7 million from a year ago, while same-store sales slipped 2%.

"Our strong community relationships and focus on healthy lives combined with a continuous flow of well designed, functional, high-quality merchandise is creating a justifiable purchase even to the cautious consumer," CEO Christine Day said in a statement.

Last week, Lululemon announced it will be opening stores geared toward the 6 to 12-year-old girl. The company will test three of these stand-alone stores, dubbed "ivivva," in Canada before the holiday season.

Looking ahead, management forecasted third-quarter earnings in the range of 11 cents to 13 cents a share.

-Reported by Jeanine Poggi in New York.

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