Lululemon Athletica Inc on Thursday raised its annual profit and revenue forecasts to above analysts’ estimates as affluent customers snap up its new belt bags, golf and tennis clothing, sending its shares up 10 percent in extended trade.
Higher-income consumers have largely shrugged off the impact of inflation to spend on discretionary goods including apparel and bags, buoyed by their savings during the lockdowns.
There has been no meaningful shift in customers’ spending behavior, Lululemon top boss Calvin McDonald said on the earnings call.
The company has also tapped into its loyal customers by launching fresh styles, entering categories including footwear and expanding its men’s line to sustain its athleisure-led pandemic sales boom, outperforming peers Athleta and Sweaty Betty….