Lululemon shares up 12% amid Q4 profit forecast update

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Lululemon
// Lululemon shares up 12% after quarterly sales boost
// Athleisure retailer also books growth in digital sales
// Chinese ecommerce business up by 76%

Lululemon has raised its profit and revenue forecasts after it revealed strong quarterly sales growth thanks to a boost from digital and Chinese sales.

The athleisure retailer updated its forecast about a month after it reported an increase in online traffic for its the third quarter.

It also recorded a 76 per cent climb in its ecommerce business in China.

Lululemon chief executive officer Calvin McDonald said the outlook revisions reflected “success around the globe” when discussing the investment in China in December.

Its shares went up by 12 per cent in the past six months, and seven per cent to $141.38 (£109.83) in morning trade.

Lululemon currently predicts its revenue to be in the range of $1.14 billion (£885 million) to $1.15 billion (£893 million) in the fourth quarter compared to its previous guidance of $1.12 billion (£870 million) to $1.13 billion (£877 million).

The also raised its profit between $1.72 (£1.34) and $1.74 (£1.35) per share, from a previous profit estimate of $1.64 (£1.27) to $1.67 (£1.29) per share.

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