Last we checked, Lululemon was expecting subdued sales results between November and January. When it released its third quarter results in December, the Canadian yoga brand lowered its full-year revenue estimates on account of port delays and lagging store openings in the fourth quarter, which ends Feb. 1.
Well, psych! Lululemon is now pretty sure it's going to clock higher than expected sales between now and February.
The company updated its guidance for the final quarter of the year on Monday morning, predicting that net revenue for the period will come in between $595 million and $600 million. Its previous estimate, issued at the end of the third quarter in December? $570 million to $585 million.
Share prices, which have been on the up and up since June, lifted as much as 9 percent following the heartening news.
Lululemon CEO Laurent Potdevin said in a release that the expected increase has to do with "improving trends and strong holiday results" — no word on those store openings and port delays. He's also feeling good about the build-out of his executive team, which he says is "near completion" after poaching a new CFO from J.Crew.
It's a lot to look forward to. We'll see how the company wound up performing when those results drop in March.