Live news updates: Lululemon boosts sales guidance after exceeding internal profit forecast

Lululemon boosted its revenue guidance after the athleisure retailer posted a 30 per cent yearly increase in sales and blew past the profit expectations it set in June.

The Vancouver-based company’s earnings follow retailers like Macy’s and Nordstrom in producing strong sales figures in their most recent quarters, but has set itself apart by boosting its revenue outlook. Others in the sector anticipate softer sales numbers in the second half of 2022 due to persistent inflation.

The maker of yoga pants and running tops recorded $1.86bn in revenues and earnings of $2.26 per share, beating consensus expectations by 5.1 per cent and 20.8 per cent, respectively. In June, the company forecast revenues in a range of $1.75bn to $1.78bn in the second quarter, and earnings between $1.89 and $1.94 a diluted share.

Shares of the company rose 9 per cent in after-hours trading.

Lululemon also raised expectations for its full-year revenues, forecasting revenues in the range of $7.87bn to $7.94bn, up from the range of $7.61bn to $7.71bn it had in the previous quarter.

“I am pleased with our start to the third quarter and believe we are well positioned for the fall and holiday seasons,” Lululemon chief financial officer Meghan Frank said.

Comparable store sales, a popular industry metric, increased 25 per cent year-on-year on a constant dollar basis.

Lululemon chief executive Calvin McDonald expressed optimism that the company would follow through with its plan to double its sales from 2021 to 2026.