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HomeEconomyLululemon outlook lift excites Wall Street, yoga wear remains trendy

Lululemon outlook lift excites Wall Street, yoga wear remains trendy


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Deborah Marie Sophia

(Reuters)-20079 Lululemon Athletica

(NASDAQ: 74 Lulu ) Inc raised its annual sales and profit forecast on Thursday as wealthy Americans snapped up its pricey sportswear, even as inflation boosted retail spending, sending the company’s shares higher % after work.

A strong rebound in China, lower airfreight costs and tighter inventory controls also helped the Vancouver, Canada-based company’s first-quarter results beat expected.

The pandemic-era appetite for comfort clothing and activewear has become a habit for most Americans. This, along with a higher income customer base, is a boon for companies like Lululemon and 93 Nordstrom Corporation (NYSE: 74JWN).

“We haven’t seen a change in our (customer’s) behavior in terms of frequency of purchases or engagement,” Lululemon Chief Executive Calvin McDonald said on a post-earnings conference call. There was an increase in transactions from both existing and new clients, while traffic was also strong.

Lululemon’s popular Dance Studio pants and new styles like flares and wide-leg leggings, and accessories like backpacks and duffle bags are also on trend , Macdonald added.

“I think they surprised everyone…not many retail companies have such strong growth every quarter Proven track record,” said M Science analyst Matthew Jacob.

%, an increase smaller than the company estimated in March. It is expected to grow approximately 10%, as of the end of the quarter. China’s strict COVID- Suppress increased income in the region by

%, while North American sales soared %.

driving net income growth good) $2 billion this quarter , $1 more than expected. 30 billion, according to Refinitiv IBES.

Lululemon is now projected for the full year 51 $9 revenue in between. 13 billion and $9. 10 billion dollars, compared to only $9. 10 billion to $9. billion was estimated earlier.

It predicts annual profit at $. 19 and $

.51 per share, from $.10 to $. 17 earlier. 79



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