(Reuters) - Yogawear chain Lululemon Athletica Inc raised its revenue and profit forecasts for the fourth quarter above the average analyst estimate, citing strong holiday season sales.
Lululemon shares were up 7 percent in premarket trading.
The retailer, which appointed a new chief financial officer last week, estimated total comparable sales to rise 6-7 percent on a constant dollar basis for the quarter ending Feb. 1.
"Our guests are responding positively to both the women's and men's product assortment," Chief Executive Laurent Potdevin said in a statement on Monday.
Lululemon, which faces strong competition in a market it once dominated, has worked to improve quality and solve supply-chain problems.
The Vancouver-based company, which operated 289 stores until the end of the third quarter, has expanded into the United States as well as outside North America to revive sales.
Lululemon estimated revenue of $595 million-$600 million for the fourth quarter, up from the $570 million-$585 million it forecast earlier. It raised its profit forecast to 71-73 cents per share from 65-69 cents.
Analysts on an average were expecting a profit of 69 cents per share on revenue of $584.7 million, according to Thomson Reuters I/B/E/S.
Lululemon's stock, which had risen more than 45 percent in the past three months, closed at $58.63 on Friday.
(Reporting By Shubhankar Chakravorty in Bengaluru; Editing by Joyjeet Das)
