Lululemon Athletica Inc. shares rose eight per cent in early trading Wednesday after the company boosted its fourth-quarter earnings guidance on stronger-than-expected sales.
Shares in the company, which updated its guidance after the close of markets on Tuesday, were up $5.22 or 7.9 per cent to $71.73 in low volume trading at the Toronto Stock Exchange on Wednesday morning.
The yoga clothing retailer said Tuesday that it expected diluted earnings per share of 55 to 57 cents for the three months ended Jan. 30, up from earlier guidance 46 to 48 cents.
Lululemon also said it now expects net revenue to be in the range of $237-million to $239-million for the quarter, up from earlier guidance for between $210-million and $215-million.
Comparable-store sales for the quarter are expected to reflect a mid-to-upper-twenties percentage increase on a constant-dollar basis compared with earlier guidance of high teens comparable-store sales growth.
Lululemon opened its first store in 1998 in Vancouver and has expanded to about 130 stores in three continents in just over a decade.