Lululemon raises fourth-quarter targets on steady holiday demand

(Reuters) -Lululemon raised its fourth-quarter sales and profit forecasts on Monday, in a sign that deeper discounts and deals spurred more customers to shop for the company’s products during the holiday season.

This comes after the sportswear maker forecast tepid holiday quarter results early last month.

CFO Meghan Frank said on Monday the company was pleased with its performance during the holiday season. “Our sales trend remains balanced across channels, categories and geographies, enabling us to raise our guidance,” Frank said in a statement.

Holiday sales for 2023 were mixed as retailers looked to draw in penny-pinched shoppers with steep discounts, according to estimates from Adobe (NASDAQ:) Analytics and Mastercard (NYSE:) data.

In December, yoga pants maker Lululemon (NASDAQ:) said it had experienced strong performance during the Thanksgiving weekend, but also noted that it was mindful of the macroeconomic environment.

Lululemon now expects fourth-quarter revenue to be between $3.170 billion and $3.190 billion, compared with its previous forecast range of $3.135 billion to $3.170 billion.

It projects current-quarter profit per share to be in the range of $4.96 to $5.00, compared with its previous expectations of $4.85 to $4.93.

Separately, Abercrombie & Fitch also lifted its fourth-quarter forecast for net sales on Monday, banking on strong holiday demand.

Lululemon, however, left its selling, general, and administrative expenses forecast unchanged.

Shares of the company were down 2.4% in premarket trading.