Lululemon profit rises as store sales increase 11%

Canadian yogawear retailer Lululemon Athletica Inc reported higher-than-expected quarterly profit and revenue, helped by strong store and online sales, and the company raised its full-year revenue and earnings forecast.

Lululemon has been expanding its men's apparel business and focusing on offering trendier styles.

The company's total comparable store sales rose 11 per cent on a constant dollar basis in the second quarter.

Lululemon's shares gained about 1.5 per cent to $65 in thin premarket trading on Thursday.

The company raised its earnings forecast to $1.87-$1.92 per share from $1.86-$1.91 and its revenue forecast to $2.03-billion-$2.06-billion from $2.0-billion-$2.05-billion.

Analysts on average were expecting a profit of $1.93 per share and revenue of $2.03-billion, according to Thomson Reuters I/B/E/S.

Lululemon's net income fell to $47.7-million in the quarter ended Aug. 2 from $48.8-million, a year earlier. Earnings per share, however, rose to 34 cents from 33 cents as there were fewer shares outstanding.

Revenue rose about 16 per cent to $453-million.

Analysts on average had expected earnings of 33 cents per share and revenue of $445.8-million