Globe/wire say Lululemon lifts annual profit forecast
2023-06-02 07:57 ET - In the News
The Globe and Mail reports in its Friday, June 2, edition that Lululemon Athletica 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. A Reuter dispatch to The Globe reports that a strong rebound in China, easing air freight costs and tighter inventory control also helped first quarter results surpass estimates.
The pandemic-era appetite for comfortable clothing and activewear seems to have turned into a habit, helping companies such as Lululemon and Nordstrom 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-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 (all figures U.S.).
Analysts on average had estimated $9.37-billion. The company projected full-year 2023 profit between $11.74 and $11.94, compared with its prior estimate of $11.50 to $11.72 a share.