UPDATE 1-Lululemon raises revenue forecast after strong holiday sales

Mon Jan 11, 2016 4:56pm EST
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Jan 11 (Reuters) - Canadian yogawear retailer Lululemon Athletica Inc 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 and Under Armour Inc 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)