Lululemon shares gain after boosting quarterly sales, profit forecast
Investors are happy about at least one retailer’s holiday season: Shares of Lululemon Athletica Inc. jumped in early trading Monday after the yogawear company increased its fourth-quarter guidance for sales and profit.
Lululemon said comparable-store sales, a key gauge of retail success, increased in the high-single to low-double digits for the current quarter, which ends Feb. 3. The company also sees total sales and adjusted profit coming in higher than its previous forecasts.
Despite low unemployment and high consumer confidence in the U.S., it appears that not all retailers reaped the benefits. But Lululemon’s preliminary data suggests it will sidestep the rout that derailed some companies’ shares last week.