Lululemon raises revenue forecast after strong holiday sales
(Reuters) - Canadian yogawear retailer Lululemon Athletica Inc LULU.O raised its fourth-quarter revenue forecast, a month after it trimmed its full-year revenue expectations, as holiday season sales exceeded its estimates.
The company's shares rose 7.8 percent to $59 in extended trade on Monday.
"We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks," Chief Executive Laurent Potdevin said.
Lululemon said on Monday it expected revenue of $690 million-$695 million for the quarter ending Jan. 31, up from the $670 million-$685 million range forecast earlier.
The company, which competes with Nike Inc (NKE.N: Quote) and Under Armour Inc (UA.N: Quote) in the lucrative athleisure market, also raised its profit forecast to 78-80 cents per share from 75-78 cents.
Lululemon in December warned that profit margins were unlikely to fully recover until 2017 and cut its full-year earnings forecast.
(Reporting by Anet Josline Pinto in Bengaluru; Editing by Don Sebastian and Sriraj Kalluvila)
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