Agenda-setting intelligence, analysis and advice for the global fashion community.
VANCOUVER, Canada — Lululemon Athletica Inc., the maker of yoga- inspired clothing, gained as much as 9.4 percent in early trading after strong holiday sales prompted the company to raise its fourth-quarter forecast.
Lululemon now expects revenue to climb as high as $600 million in the period, which ends Feb. 1. The Vancouver-based company had previously forecast $570 million to $585 million. Lululemon also increased the top end of its earnings range to 73 cents a share from 69 cents.
"Backed by improving trends and strong holiday results, we are entering 2015 in very good shape," Chief Executive Officer Laurent Potdevin said in a statement.
The shares climbed as high as $64.17 in early trading after the company delivered the forecast. The stock had fallen 5.5 percent in 2014.
ADVERTISEMENT
The company cited its current product assortment and the bolstering of senior leadership ranks for putting Lululemon on stronger footing. While net income is projected to decrease for a fourth straight quarter, the company predicted that an overhaul this year would lead to improving operating margins in 2016.
“We will complete the critical foundational business improvements already under way, while also making disciplined, strategic investments in our brand, product, guest experience and international expansion efforts,” Potdevin said.
By Nick Turner. Editor: Bruce Rule.
