NEW YORK, United States — Canadian athletic apparel maker Lululemon Athletica Inc's first-quarter profit and revenue beat analysts' expectations on Wednesday, as efforts to boost sales at its stores and online investments paid off.
The company also raised its full-year profit and revenue forecasts.
For the year, the company now expects revenue of $3.73 billion to $3.77 billion, compared with its previous forecast of $3.70 billion to $3.74 billion. Lululemon forecast earnings per share between $4.51 and $4.58, higher than its previous estimate of $4.48 to $4.55.
Shares of the company were up 3% in extended trading.
The yoga pants specialist, which pioneered the athleisure trend, has been looking to lure customers by boosting its online presence in a highly competitive retail industry that includes traditional sportswear makers Nike and UnderArmour, as well as companies like Target and Gap.
Lululemon's total comparable sales, a key indicator for the company's business, rose 14%, while analysts on average had expected a rise of 11.6%, according to IBES data from Refinitiv.
The company's revenue rose to $782.3 million in the three months ended May 5, from $649.7 million a year ago. Analysts on average had estimated revenue of $755.3 million, according to IBES data from Refinitiv.
Net income rose to $96.6 million, or 74 cents per share, from $75.2 million, or 55 cents per share, a year earlier.
Analysts on average had expected earnings of 70 cents per share.
By Shradha Singh in Bengaluru; Editor: Maju Samuel.