Lululemon Raises 3Q Outlook On Strong Sales

NEW YORK (AP) — Athletic apparel maker Lululemon Athletica Inc. raised its third-quarter profit and revenue forecasts on Monday, citing stronger than expected sales.

The company reported strong demand for core yoga-inspired products, and for its new running line and seasonal outerwear items. Lululemon credited its inventory strategies with helping to keep in-demand items in stock and keep up with renewed sales momentum.

Lululemon said net income will range between 17 cents and 19 cents per share for the third quarter, well above its previous estimate of 11 cents to 13 cents per share.

The Canadian company also estimated revenue will be between $110 million and $112 million, up from a prior forecast of $95 million to $100 million. Lululemon believes sales at stores open for at least a year will grow in the high single digits, rather than be flat year-over-year.

A Thomson Reuters survey shows analysts, on average, expect a profit of 14 cents per share and revenue of $98.9 million. In aftermarket trading, Lululemon stock advanced $2.05, or 8 percent, to $27.88, having closed the regular session up 38 cents at $25.71.