Shares of the Vancouver-headquartered athleisure retailer fell around 20 per cent when the markets opened Friday, after it cut profit forecasts for the full year. The US$314.6 million in first-quarter net income it reported missed expectations by 0.8 per cent, according to analyst forecasts compiled by Visible Alpha. The retailer is making “modest” price increases on certain products and looking for “efficiency” in sourcing, CFO Meghan Frank said on a call with investors. (The Logic)

Talking point: It was the second quarter in a row where Lululemon shares dropped by double digits after earnings. Though its sales in China were up 22 per cent year over year, sales both there and in the rest of the world outside the U.S. missed analyst expectations. Overall, CEO Calvin McDonald said, customers were taking a step back, and Lululemon is “definitely not happy where the growth is in the U.S.” Canada remains a bright spot, he said, with revenue growth outpacing that south of the border.