Lululemon Athletica Inc. raised its fourth-quarter revenue and earnings projections, citing strong consumer demand during the holiday shopping season. The athletic apparel retailer, known for its premium activewear, now expects net revenue to range between $3.56 billion and $3.58 billion, up from its earlier forecast of $3.48 billion to $3.51 billion. The revised guidance reflects an 11% to 12% increase compared with the fourth quarter of fiscal 2023, or a 6% to 7% rise when excluding the 53rd week of fiscal 2024.

Diluted earnings per share (EPS) are now expected to fall between $5.81 and $5.85, higher than the previously projected range of $5.56 to $5.64. The announcement led to a 3.3% premarket rise in Lululemon's stock, which reached $408.55 on Monday.

Meghan Frank, Lululemon's chief financial officer, attributed the increased outlook to robust consumer engagement with the company's offerings during the holiday season. 

The positive revision comes after Lululemon reported solid results for the quarter ending October 27, 2024, when the company posted net revenue of $2.4 billion, slightly ahead of Wall Street expectations of $2.36 billion. Earnings of $2.87 per share also beat analysts' predictions of $2.71 per share, demonstrating the company's ongoing momentum.

The holiday season has traditionally been a critical period for Lululemon, and the latest numbers suggest the brand continues to resonate strongly with its target audience. Known for its high-quality yoga pants, leggings, and activewear, the company has carved a niche in the premium athletic apparel market. The brand's strong appeal among fitness enthusiasts and casual consumers alike positions it well to capitalize on shifting lifestyle trends emphasizing health and wellness.

Lululemon's fiscal 2023 fourth-quarter revenue was $3.2 billion, in line with analysts' expectations, marking a strong baseline for this year's double-digit growth projection. The company's ability to exceed market expectations in the most recent quarter further cements its reputation for consistent performance in a competitive sector.