Lululemon Athletica on Tuesday forecast full-year revenue and profit above analysts’ estimates.Shannon Stapleton/Reuters
Lululemon Athletica on Tuesday forecast full-year revenue and profit above analysts’ estimates, signaling demand for athletic wear would remain consistent even as people return to offices and resume travel.
Shares of the company rose about five per cent in extended trading.
Many consumers have shifted their preference to comfortable and casual clothing since the pandemic started, helping brands such as Lululemon whose athleisure and sportswear have now become a major part of everyday fashion.
Last week, rival Nike Inc reported better-than-expected third-quarter earnings and added that manufacturing issues were now behind it, positioning the company for rising demand for sports shoes and apparel.
Lululemon forecast full-year 2022 revenue between $7.49 billion and $7.62 billion, while analysts are expecting $7.30 billion, according to IBES data from Refinitiv.
It also forecast full-year profit between $9.15 and $9.35 per share, compared to estimates of $9.06 per share.
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