Lululemon Athletica lifted its annual sales forecast for a second time on Thursday, betting on steady demand for its activewear from affluent shoppers in North America and China.
Lululemon is seeing “no change” in customer behaviour for its products as people have stuck to their pandemic habits of shopping for comfortable clothing such as Dance Studio pants, running shorts, and accessories like backpacks and duffles.
Like industry peer Hibbett, Lululemon has also been launching new products such as “road-to-trail” running shoes and introducing new colours in its sports apparel in a bid to attract more customers to shop at its stores.
The results come at a time when several industry peers, including Nike, Dick’s Sporting Goods and Foot Locker, are taking a cautious stance towards the second half of the year due to a weakening consumer spending environment.
The company now expects full-year 2023 revenue between $9.51 billion and $9.57 billion, compared with its prior estimate of $9.44 billion to $9.51 billion.
Lululemon now expects annual profit between $12.02 and $12.17 per share, compared with its prior estimate of $11.74 to $11.94 per share.
By Granth Vanaik; Editor Maju Samuel
Lululemon Beats Expectations, Raises Full-Year Outlook
The activewear brand’s revenue rose 24 percent year-over-year to $2 billion, reflecting growth driven by China, new categories and a new loyalty programme.