Lululemon raises quarterly profit view

Lululemon Athletica (LLL.TO), the Vancouver-based yoga wear retailer, said it expects its fourth quarter profit and revenue to be higher than previously expected after robust sales during the holiday season.

Lulemon Athletica ©

The company sees diluted earnings per share in a range of 47 to 49 Canadian cents in the fiscal fourth quarter ended Jan. 29, up from its previous guidance range of 40 to 42 Canadian cents a share, it said in a statement on Tuesday.

Revenue is seen between C$358 million ($348.74 million) and C$363 million, up from expectations of C$327 million to C$332 million and well ahead of C$245 million in the fourth quarter a year ago.

Same-store sales, a key measure of a retailer's success, are expected to rise more than 20 percent. The company had previously expected a same-store sales, or sales at established stores, in the mid-teens in percentage terms.

"Our work throughout the year building our inventory position is driving our success in the fourth quarter," Lululemon Chief Executive Christine Day said in a statement.

Lululemon has managed to carve out a profitable niche in the competitive clothing retail business with its popular tight-fitting yoga apparel. It has also been a market darling, with the shares rising 39 percent last year despite a second-half slump.

The stock, which closed on Monday at C$54.69 on the Toronto Stock Exchange, were up 10.6 percent at C$59.08 in pre-market NASDAQ trading.

($1 = 1.0266 Canadian dollars)

(Reporting By Cameron French)