Latest Breaking News Online News Portal
Check out what’s clicking on FoxBusiness.com
Lululemon Athletica raised its forecast for annual sales and profit on the strength of sales for its pricey activewear.
Shares gained more than 11% on Friday.
Contributing to better-than-expected quarterly results were an easing of air freight costs and tighter inventory control as well as a strong rebound in China.
The move toward more comfortable clothing and activewear since the pandemic has taken hold with most Americans, especially among a higher-income customer base.
LULULEMON EMPLOYEES FIRED AFTER CHASING ROBBERS OUT OF STORE: REPORT
The corporate logo for Lululemon hangs on a wall at their store in Brookfield Place in New York City. ((Photo by Gary Hershorn/Getty Images) / Getty Images)
“We’ve seen no change in our (customer) behavior in terms of frequency of purchase or engagement,” said Lululemon CEO Calvin McDonald on a post-earnings call.
Lululemon saw inventories rise a smaller-than-expected 24%. The company expects growth of about 20% at the end of the current quarter.
Revenue from China rose 79% helped by the easing of that country’s strict COVID-19 curbs.
North America sales jumped 17%.
OVER $4K OF LULULEMON MERCHANDISE STOLEN FROM DC STORE
A Lululemon sign is seen at a shopping mall in San Diego, California. (REUTERS/Mike Blake / Reuters Photos)
Net revenue increased 24% to $2 billion, beating estimates of $1.93 billion, according to Refinitiv IBES.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LULU | LULULEMON ATHLETICA INC. | 365.44 | +37.09 | +11.30% |
Lululemon now expects full-year 2023 revenue between $9.44 billion and $9.51 billion, compared with $9.30 billion to $9.41 billion projected earlier.
RETAIL SALES RISE IN APRIL FOR FIRST TIME IN 2 MONTHS
It forecastS annual profit between $11.74 and $11.94 per share, up from $11.50 to $11.72 earlier.
Reuters contributed to this report.
