Lululemon expects Q4 results at top end after strong festive sales

(Sharecast News) - Shares in Lululemon were rising on Wall Street on Monday after the Canadian upmarket athleisure brand said results would be at the top end of forecasts following a strong festive selling season. The Vancouver-based workout and lifestyle clothing manufacturer said net revenues and diluted earnings per share for the fourth quarter to 2 February are now expected to be at the "high end" of guided ranges.

The firm had previously guided to net revenues of $3.500bn-3.585bn and earnings per share of $4.66-4.76, down from $3.60bn and $6.14 reported the year before respectively.

"Based on our performance over the holiday period, we expect to achieve the higher end of our previously communicated fourth quarter net revenue and EPS guidance," said chief financial officer Meghan Frank.

"We remain focused on executing our action plan to drive improvement in our U.S. business and look forward to the opportunities in front of us."

The update comes ahead of Lululemon management meeting with analysts ant investors at the annual consumer insights event, the ICR Conference, taking place in Orlando this week.

Lululemon shares were up nearly 2% at $207.75 by 1538 GMT.