Lululemon shares see a healthy rebound
NEW YORK— Lululemon Athletica Inc. rose the most in six months after boosting its forecast, allaying fears that the athleisure market has lost a step. The yoga-pants maker now expects earnings of as much as $2.48 (U.S.) a share this year, excluding some items. That compares with a previous range of up to $2.42. Lululemon topped analysts’ estimates with its third-quarter sales and profit.
The upbeat results give Lululemon fresh momentum as it heads into the crucial holiday season — and signal that sporty apparel isn’t falling out of favour with consumers. Nike and Under Armour have seen sales stall this year, stoking fears that peers such as Lululemon will suffer as well. But CEO Laurent Potdevin has been working to keep the company growing by adding new products and entering overseas markets.
“As we start the holiday season, I’m energized by our momentum,” Potdevin said in a statement.
“We are increasing guidance to reflect this performance.”
The shares rose as much as 8.9 per cent to $73.70 on Thursday, the biggest intraday increase since June 2. They had climbed 4.1 per cent this year through Wednesday’s close.
Third-quarter earnings amounted to 56 cents, excluding certain items. That topped the 52-cent estimate. Comparable sales grew 8 per cent, beating Consensus Metrix’s 5.2-percent average estimate.