Shares of Lululemon rose nearly 3 percent in premarket trading Monday after the company indicated it saw strong sales during the holidays.
While retailers like Macy’s struggled to meet expectations for their holiday sales, Lululemon benefited from the best holiday season in six years. Monday morning, the athleisure retailer raised its forecast for both revenue and earnings for the quarter that ends Feb. 3.
“The momentum in our business remained strong throughout the holiday season, reflecting the ongoing success of our product offerings and our connection with guests around the globe,” CEO Calvin McDonald said in a statement.
Excluding a tax expense, it now expects to earn between $1.72 and $1.74 per share, up from its previous estimate of $1.64 to $1.67 per share.
Net revenue is expected to reach a range of $1.14 billion to $1.15 billion, with same-store sales increasing in the mid-to-high teens. That outlook is up from its prior fourth-quarter forecast of $1.12 billion to $1.13 billion in revenue.
The company has beat its internal updated sales outlook for the fourth quarter for the last four years and topped its earnings forecast for three out of the last four, according to a note from Baird analyst Mark Altschwager.
When Lululemon announced its third-quarter earnings in December, the company’s outlook for the fourth quarter disappointed investors, who sent shares down 3 percent. The Vancouver-based company’s management will be meeting with analysts and investors at the ICR Conference in Orlando on Monday and Tuesday.
Over the past year, Lululemon shares are up 67 percent over the past year. The company has a market cap of $17.5 billion.