(Reuters) – 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 relatively seeing “no change” in customer behavior for its products as people have stuck to their pandemic habits of shopping for comfortable clothing such as Dance Studio pants, running shorts as well as accessories like backpacks and duffle.
Like industry peer Hibbett, Lululemon has also been launching new products such as “road-to-trail” running shoes and introducing new colors 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 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.
(Reporting by Granth Vanaik in Bengaluru; Editing by Maju Samuel)
