(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.
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