Yoga apparel maker Lululemon Athletics (NASDAQ:LULU) raised its fourth-quarter guidance ahead of Wall Street expectations on Tuesday, citing higher-than-anticipated sales during the holiday season of its new brightly colored clothes line.
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The company now sees earnings for the three months ending Jan. 29 in the range of 47 cents to 49 cents a share, up from its earlier view between 40 cents and 42 cents a share.
Revenue for the final quarter in fiscal 2011 is expected to be between $358 million and $363 million for the current quarter, compared with an earlier forecast of $327 million to $332 million.
Analysts on average in a Thomson Reuters poll are looking for a profit of 42 cents on sales of $334.5 million.
Comparable sales, or sales in stores open longer than a year, are slated to reflect a low-to-mid twenties percentage increase, better than Lululemon’s earlier view in the low-to-mid-teens.
“Guests have responded exceptionally well to the robust assortment and bright color palette for holiday, and momentum continues with the new spring product offerings,” the company’s chief executive, Christine Day, said in a statement.