Lululemon Athletica saw its share price jump by 7 percent after the Canadian group raised its forecast for profits and revenues for the last quarter of its financial year, ending on Feb. 3. It now expects to report revenues in a range of $1,140 million to $1,150 million for the quarter, compared with its previous forecast of $1,120 million to $1,130 million.
The management said the new outlook reflects “success around the globe.” The brand's growth in both Asia and Europe went up by more than 50 percent. In China, the management continues to see strength within its digital business, which grew by 76 percent in the quarter, with an increase of over 200 percent since two years ago.
Lululemon said it experienced its biggest day ever for e-commerce on Thanksgiving, which was then surpassed by its Black Friday promotion in November.
The management attributed these higher-than-expected sales to a revamped e-commerce platform, which increased both online traffic as well as actual digital sales. It said the traffic on its websites increased by more than 35 percent in the quarter.
The new guidance comes about a month after the company reported that revenues for the three months ended Oct. 28 went up by 21 percent from the year-ago quarter, with comparable sales up by 17 percent.
