(Reuters) -Lululemon Athletica on Tuesday forecast full-year and current-quarter profit and revenue above analysts’ estimates, signaling demand for athletic wear would remain consistent even as people return to offices.
Shares of the company rose about 8% in extended trading.
The yogawear maker also posted better-than-expected fourth-quarter adjusted earnings even as an increase in Omicron infections led the company to reduce store hours.
Many consumers have shifted their preference to comfortable and casual clothing since the pandemic started, helping brands such as Lululemon whose athleisure and sportswear have now become a major part of everyday fashion.
Last week, rival Nike Inc reported better-than-expected third-quarter earnings and added that manufacturing issues were now behind it, positioning the company for rising demand for sports shoes and apparel.
Lululemon forecast full-year 2022 revenue between $7.49 billion and $7.62 billion, while analysts are expecting $7.30 billion, according to IBES data from Refinitiv.
It also forecast full-year profit between $9.15 and $9.35 per share, compared to estimates of $9.06 per share.
“I don’t see any reason why they can’t… make those numbers they put out for 2022,” Morningstar Research analyst David Swartz said. “For the most part, the supply chain problems have not affected them that much.”
The analyst added that input costs due to supply issues will affect other companies more than it would Lululemon, because it has such high prices to begin with.
Excluding items, Lululemon earned $3.37 per share in the fourth quarter ended Jan. 30, beating estimates of $3.28 per share.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh Kuber)
