(By Balaseshan) Lululemon Athletica Inc. (NASDAQ: LULU), which sells technical athletics and yoga apparel, has raised earnings guidance for the fourth quarter on strong holiday shopping patterns.
The company increased its fourth quarter earnings guidance to about $0.74 per share from previous forecast range of $0.71 to $0.73 per share, while Street predicts $0.74 per share.
For the fourth quarter, Lululemon now anticipates that net revenue will be at the high end of its guidance range of $475 million to $480 million, while Street predicts $489.01 million.
Comparable-store sales is now expected to increase in the high single digits percentage on a constant-dollar basis.
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"We are also pleased that our gross margin is running slightly ahead of plan, and that we are entering 2013 in a clean inventory position. Along with our new back to gym product, we are beginning to flow a beautiful new spring assortment into our stores this week and look forward to introducing new innovation and function to our guests in 2013," said Christine Day, lululemon's CEO.
LULU closed Monday's regular session up 2.06% at $72.30. The stock has been trading between $52.20 and $81.09 for the past 52 weeks.