Lululemon Athletica Inc. jumped to 7.6 percent in the last operations after increasing its forecast, easing fears that the athletic entertainment market has lost a step.
The manufacturer of yoga pants now expects earnings of up to $ 2.48 per share this year, excluding some items. That compares to a previous range of up to $ 2.42. Lululemon also exceeded analysts' estimates with its third quarter sales and earnings.
The encouraging results give Lululemon a new boost as it approaches the crucial Christmas season and point out that sportswear is not losing popularity among consumers. Nike Inc. and Under Armor Inc. have seen sales stalled this year, fueling fears that peers like Lululemon will also suffer. But CEO Laurent Potdevin has been working to keep the company growing by adding new products and entering foreign markets.
"When we started the holiday season, I am excited about our momentum," Potdevin said in a statement. "We are increasing the guidance to reflect this performance."
Shares rose to $ 72.80 in extended trading on Wednesday. They had increased 4.1 percent this year until closing.
Earnings for the third quarter amounted to 56 cents, excluding certain items. That led to the estimate of 52 cents. Comparable sales grew 8 percent, surpassing the 5.2 percent average estimate compiled by Consensus Metrix.