(Reuters) – Lululemon Athletica raised its full-year revenue and profit forecast on Thursday, as demand for its high-priced yoga pants and running shorts from affluent U.S. customers remains strong.
The customers, largely unaffected by a decades-high inflation, are happily running high bills at Lululemon despite recent price hikes, helping the company maintain the pandemic-induced boom in sales of its comfortable sportswear.
The athletic wear maker, like many other U.S. companies, has been raising prices on selective products to offset higher freight and manufacturing charges arising from global supply chain disruptions.
Lululemon on Thursday forecast current-quarter revenue and profit above estimates and beat first-quarter earnings estimates.
Shares of the company rose about 2% in extended trading. They were down 23% this year.
Lululemon expects full-year 2022 revenue between $7.61 billion and $7.71 billion, up from its prior forecast of $7.49 billion to $7.62 billion.
It also sees profit between $9.42 and $9.57 per share, compared with its previous forecast of $9.15 to $9.35.
However, rival companies Under Armour and Adidas flagged a hit to business from renewed COVID-19 curbs in China. Under Armour forecast full-year profit below estimates as it also grapples with higher transportation costs.
Lululemon, meanwhile, also forecast 2022 adjusted profit between $9.35 and $9.50 per share, above analysts’ average estimate of $9.28 per share, according to IBES data from Refinitiv.
Excluding items, Lululemon earned $1.48 per share in the first quarter, beating estimates of $1.43 per share.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
