Lululemon (LULU) beat the Street on Thursday with a 40% leap in fiscal first-quarter earnings, but the yogawear retailer’s tepid outlook spooked shareholders.

Shares of the Vancouver-based company tumbled about 10% in the wake of the results and disappointing guidance.

Lululemon said it earned $46.6 million, or 32 cents a share, last quarter, compared with a profit of $33.4 million, or 23 cents a share, a year earlier. Analysts had called for EPS of 30 cents.

Revenue leaped 52.9% to $285.7 million, topping the Street’s view of $271 million. Same-store sales leaped 25%.

"Our strategy to increase inventory levels led to strong revenue growth and earnings performance in the first quarter as our guests responded well to our spring styles and colors,” CEO Christine Day said in a statement.

However, Lululemon sees second-quarter EPS of 28 cents to 30 cents on sales of $273 million to $287 million, compared with rosier estimates from analysts for EPS of 33 cents on revenue of $289.8 million. Same-store sales growth is expected to cool to low double-digits.

For the full year, management now expects to earn $1.55 to $1.60 on sales of $1.32 billion to $1.34 billion. Wall Street had been anticipating full-year EPS of $1.63 and revenue of $1.35 billion. Previously Lululemon called for EPS of $1.50 to $1.57 on revenue of $1.3 billion to $1.325 billion.

Lululemon shares retreated 10.05% to $62.98 ahead of Thursday’s open, setting them up to eat into their 2012 surge of about 50%.

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