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Lululemon beats quarterly estimates, raises full-year forecast

Credit: REUTERS/BRENDAN MCDERMID

Canadian athletic apparel maker Lululemon Athletica Inc's first-quarter profit and revenue beat analysts' expectations on Wednesday, as efforts to boost sales at its stores and online investments paid off.

Compares with estimates, adds background

June 12 (Reuters) - Canadian athletic apparel maker Lululemon Athletica Inc's LULU.O first-quarter profit and revenue beat analysts' expectations on Wednesday, as efforts to boost sales at its stores and online investments paid off.

The company also raised its full-year profit and revenue forecasts.

For the year, the company now expects revenue of $3.73 billion to $3.77 billion, compared with its previous forecast of $3.70 billion to $3.74 billion. Lululemon forecast earnings per share between $4.51 and $4.58, higher than its previous estimate of $4.48 to $4.55.

Shares of the company were up 3% in extended trading.

The yoga pants specialist, which pioneered the athleisure trend, has been looking to lure customers by boosting its online presence in a highly competitive retail industry that includes traditional sportswear makers Nike NKE.N and UnderArmour UAA.N, as well as companies like Target TGT.N and Gap GPS.N.

Lululemon's total comparable sales, a key indicator for the company's business, rose 14%, while analysts on average had expected a rise of 11.6%, according to IBES data from Refinitiv.

The company's revenue rose to $782.3 million in the three months ended May 5, from $649.7 million a year ago. Analysts on average had estimated revenue of $755.3 million, according to IBES data from Refinitiv.

Net income rose to $96.6 million, or 74 cents per share, from $75.2 million, or 55 cents per share, a year earlier.

Analysts on average had expected earnings of 70 cents per share.

(Reporting by Shradha Singh in Bengaluru; Editing by Maju Samuel)

((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780 Ext: 2439, outside U.S. +91 80 6749 2439; Reuters Messaging: shradha.singh@.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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