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Lululemon raises financial guidance for quarter on better than expected sales

VANCOUVER, B.C. - Shares of Lululemon Athletica Inc. (TSX:LLL) jumped nearly 11 per cent Wednesday after the yoga wear retailer raised its earnings guidance for its third quarter due to better than expected sales.

VANCOUVER, B.C. - Shares of Lululemon Athletica Inc. (TSX:LLL) jumped nearly 11 per cent Wednesday after the yoga wear retailer raised its earnings guidance for its third quarter due to better than expected sales.

In early trading on the TSX, the Vancouver company gained $3.01 to $30.40, a gain of 10.99 per cent.

Late Monday after markets closed, the athletic clothing retailer said it expects diluted earnings per share to be between 17 cents and 19 cents compared with earlier guidance for between 11 cents and 13 cents.

The average analyst estimate had been for earnings of 14 cents per share, according to Thomson Reuters.

Lululemon said it also now expects net revenue to be between $110 million to $112 million for the quarter ended Nov. 1 compared with earlier guidance for a range of $95 million to $100 million and $87 million a year ago.

Comparable-store sales for the quarter are expected to reflect a high-single digit increase on a constant-dollar basis compared with a year ago.

The company had previously offered guidance for relatively flat comparable store sales for the quarter.

"Our sourcing and production strategies designed to chase inventory and keep pace with renewed sales momentum proved to be very effective during this fall season," Lululemon chief executive Christine Day said in a statement.

"By staying in stock in our core items, as well as our new running line and seasonal outerwear offerings, we have been able to satisfy strong guest demand and exceed our original revenue expectations for the quarter."

 
 
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