Tallahassee Journal

Yogawear chain Lululemon boosts 4Q outlook

Yogawear chain Lululemon boosts 4Q outlook

Shares of ultra-hip yoga apparel-maker Lululemon were up more than 6% in early morning trading Monday after the company boosted its fourth quarter outlook following a strong holiday season. Shares were up $3.92 at $62.55 shortly after the market opened.635566531197898604-2-Lululemon-eb2882

“We are entering 2015 in very good shape,” said Lululemon CEO Laurent Potdevin in a statement. “Our guests are responding positively to both the women’s and men’s product assortment.” Many retailers — including JCPenney — have posted better-than-expected holiday seasons. A number of formerly-skittish shoppers who had held back for years finally gave in and boosted their holiday spending in 2014. Vancouver-based Lululemon clearly benefited from the improving consumer sentiment on the economy — and that may now continue into 2015.

Lululemon said it now expects fourth-quarter earnings of 71 cents to 73 cents per share, up from its previous forecast of 65 cents to 69 cents per share. Analysts expected earnings of 69 cents per share, according to FactSet. Revenue is now expected to be $595 million to $600 million, compared with its previous forecast of $570 million to $585 million. Analysts expected revenue of $585.3 million.

“With the build-out of our senior leadership team near completion, I feel confident in our ability to execute on our growth strategies,” Potdevin said. Last week, Stuart Haselden was named as chief financial officer, effective Feb. Haselden’s career spans 15 years of executive leadership at global apparel retailers, including J. Crew Group and Saks. He served as CFO at J. Crew since May 2012. Potdevin, in the statement, also said Lululemon will pursue international expansion in 2015.