Lululemon raises full-year earnings forecast as athleisure demand remains strong

Lululemon Athletica LULU.O raised its full-year revenue and profit forecast on Thursday, as demand for its high-priced yoga pants and running shorts from affluent US customers remains strong.

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Customers largely disaffected by decades of high inflation, are running up high bills at Lululemon despite recent price hikes, helping the company maintain a pandemic-induced boom in sales of its casual games.

Like many other US companies, the athletic wear maker is raising prices on select products to offset higher freight and manufacturing charges arising from Granthshala supply chain disruptions.

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Lululemon on Thursday forecast current-quarter revenue and profit above estimates and beat first-quarter earnings estimates.

Shares of the company rose nearly 2% in extended trading. They were down 23% this year.

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