(Reuters) -Lululemon Athletica Inc raised its annual sales and profit forecasts on Thursday, betting on strong demand for its activewear from affluent U.S. shoppers and a recovery in China, sending its shares up 11% in extended trading.
The pandemic-era appetite for comfortable clothing and activewear seems to have turned into a habit, helping companies such as Lululemon and Nordstrom Inc avoid a wider slump in discretionary spending.
Lululemon is also banking on new launches and more full-price selling to drive revenues and offset any impact from promotions taken to clear inventories.
Vancouver, Canada-based Lululemon now expects full-year 2023 revenue between $9.44 billion and $9.51 billion, compared with its prior estimate of $9.30 billion to $9.41 billion. Analysts on average had estimated $9.37 billion, according to Refinitiv IBES data.
The company projected full-year 2023 profit between $11.74 and $11.94, compared with its prior estimate of $11.50 to $11.72 per share.
(Reporting by Deborah Sophia in Bengaluru; Editing by Devika Syamnath)
