VANCOUVER, Canada — Lululemon Athletica Inc. jumped as much as 7.6 percent in late trading 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 a share this year, excluding some items. That compares with a previous range of up to $2.42. Lululemon also 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 Inc. and Under Armour Inc. have seen sales stall this year, stoking fears that peers like Lululemon will suffer as well. But chief executive 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 energised by our momentum,” Potdevin said in a statement. “We are increasing guidance to reflect this performance.”
The shares rose as high as $72.80 in extended trading on Wednesday. They had risen 4.1 percent this year through the close.
Third-quarter earnings amounted to 56 cents, excluding certain items. That topped the 52-cent estimate. Comparable sales grew 8 percent, beating the 5.2 percent average estimate compiled by Consensus Metrix.
By Lindsey Rupp; editor: Nick Turner.