Lululemon Forecasts Better-Than-Expected Sales As Digital Business Accelerates
Lululemon on Tuesday reported revenue and profit for the fiscal fourth quarter that topped analysts’ estimates, boosted by the athletic apparel maker’s online business, and double-digit sales growth in both its women’s and men’s divisions. It offered an upbeat outlook for sales during the current quarter and for the year, anticipating consumer demand for its sweat-wicking leggings and sports bras will continue. The retailer has been a huge pandemic beneficiary, with many people stuck at home gravitating toward workout clothing as everyday wear. The company’s shares dropped more than 1% in after-hours trading, having risen more than 60% over the past 12 months. Lululemon cautioned that a potential resurgence of Covid cases could hurt its business, despite its forecast for revenue growth. Read more at CNBC.