Lululemon Athletica (Lululemon (LULU)) reported its first-quarter earnings after the bell on Thursday, and while the numbers were a mixed bag, the real story was the outlook. The athletic apparel company beat revenue estimates but missed on earnings by a hair, and then proceeded to lower its guidance for the rest of the year. Investors didn't like what they heard, sending shares down 9.49% in after-hours trading to $113.03.

Q1 Earnings: A Beat and a Miss

For the quarter, Lululemon posted revenue of $2.47 billion, topping the consensus estimate of $2.43 billion. Earnings came in at $1.69 per share, just shy of the $1.70 analysts were expecting. Total revenue was up 4% year-over-year, but that growth was entirely driven by international markets. Americas net revenue actually fell 3%, while international revenue surged 22%. Total comparable sales rose 1%, again boosted by international strength.

Inventories crept up 2% year-over-year to $1.7 billion, and the company ended the quarter with 816 stores after opening five new company-operated locations. Lululemon also had about $1.5 billion in cash and cash equivalents on hand.

Meghan Frank, interim co-CEO and CFO, noted some positive signs in North America. "Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales," she said. But she also acknowledged the challenges ahead: "More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine."

What's Next: A Disappointing Outlook

The real pain point for investors was the guidance. For the second quarter, Lululemon expects revenue between $2.45 billion and $2.48 billion, well below the $2.60 billion analysts were looking for. Earnings per share are expected to be $1.76 to $1.81, versus estimates of $2.71. That's a massive miss on the bottom line.

The company also slashed its full-year outlook. It now sees revenue of $11 billion to $11.5 billion, down from its prior range of $11.35 billion to $11.50 billion. Full-year earnings are expected to be $10.95 to $11.15 per share, down from $12.10 to $12.30. Both figures are well below current analyst estimates.

Management will discuss the quarter in more detail on an earnings call at 4:30 p.m. ET. But for now, the market is voting with its feet—and those feet are heading for the exits.