(Bloomberg) — Lululemon Athletica Inc. rose in late trading after boosting its sales outlook for the current year — a sign that the pandemic-era trend toward comfy clothes is persisting.
- The company sees net revenue in a range of $6.25 billion to $6.29 billion in the fiscal year ending Jan. 30, 2022. That’s up from a previous range that was capped at $6.26 billion. Lululemon also posted third-quarter revenue, adjusted profit and same-store sales, excluding currency effects, that outpaced expectations.
Key Insights
- Chief Executive Officer Calvin McDonald said he’s “pleased with our early holiday season performance.” The company is projecting revenue of $2.13 billion to $2.17 billion in the fourth quarter.
- Supply chain problems are plaguing the apparel seller along with the rest of the industry, as logistical woes like port congestion and labor shortages cause havoc. However, the company said it is happy with its performance “given the ongoing, industry-wide supply chain issues we continue to navigate,” said Chief Financial Officer Meghan Frank.
- Lululemon opened 18 new stores in the period, bringing its network to 552 locations.
Market Reaction
- The shares rose 1% at 4:46 p.m. in after-market trading in New York. The stock has gained 20% this year through the Thursday’s close.
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