Shares of Lululemon Athletica (NASDAQ:LULU) jumped 10% after the Vancouver, British Columbia-based company raised its outlook for the year and reported sales that beat analysts’ expectations.
The Canadian maker of luxury yoga and exercise clothing has capitalized on the extended work-from-home trend. Lululemon reported that its revenue for fiscal 2022, ending in January, will be as much as $6.26 billion U.S. Its previous guidance had an upper limit of $5.91 billion U.S.
Lululemon’s forecast for third-quarter sales and profit also beat Wall Street’s estimate. Chief Executive Officer Calvin McDonald now sees the company beating its long-term revenue target by the end of 2021 -- two years ahead of schedule.
On a call with analysts, McDonald said store productivity was now on par with 2019, before the pandemic occurred. The company is again hosting in-person yoga classes and events at its stores, which help to drive repeat visits and impulse purchases.
Lululemon shares rose 10% to $420.71 U.S., an all-time high, on news of the improved outlook. Investment bank Cowen & Co. quickly raised its price target for Lululemon stock to $520 U.S. a share from $476 U.S., marking a new high on Wall Street.
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