Lululemon boosts outlook after strong holiday season

Shoppers responded to Lulu's 'innovative merchandise offerings'

Lululemon Athletica raised its outlook for the rest of its fiscal year 2019 after a strong holiday shopping season, sending shares higher.

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LULULULULEMON ATHLETICA INC.333.92+8.25+2.53%

The athletic-apparel maker expects fourth-quarter diluted earnings per share to be in the range of $2.22 to $2.25, up from its previous forecast of $2.10 to $2.13. Fourth-quarter net revenue is now forecast to be in the range of $1.37 billion to $1.38 billion, the result of a comparable sales increase in the mid to high teens on a constant dollar basis, above its previous outlook of $1.315 billion to $1.33 billion.

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"We're excited by the momentum in our business over the holiday period with guests responding well to our innovative merchandise offerings," CEO Calvin McDonald said in a statement.

Lululemon's strong holiday season comes amid a mixed retail landscape. Amazon and Macy's were among the retailers who posted strong results while Kohl's and J.C. Penney disappointed.

Lululemon has not yet confirmed a date for its fourth-quarter earnings release.

On Dec. 11, the company reported third-quarter revenue rose 23 percent year-over-year to $916.1 million. Diluted earnings per share were 96 cents, up from 71 cents the previous year.

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Shares are up 1.4 percent so far in 2020 after gaining 90.5 percent last year.