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Lululemon Athletica on Tuesday forecast full-year revenue and profit above analysts’ estimates, signalling demand for athletic wear would remain consistent even as people return to offices and resume travel.
Shares of the company rose about 5 percent 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.
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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.
By Ananya Mariam Rajesh; Editing by Shailesh Kuber
Learn more:
How Lululemon Built Athleisure’s Leading Brand – Download the Case Study
As much of the fashion industry scrambled to survive the Covid-19 crisis, the activewear label’s share price rose to an all-time high. How did Lululemon come to dominate the age of athleisure, prosper through the early days of the pandemic and solidify its position as one of the world’s most powerful apparel brands?
