Lululemon ups 2014 forecast

Oliver Smith
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CANADIAN clothing heavyweight Lululemon Athletica reported a higher-than-expected quarterly profit yesterday, mitigating some of the damage from a series of mishaps last year, spurring it to raise its 2014 profit forecast and pushing its stock higher.

Lululemon’s shares jumped 13.9 per cent on the results to $43.73 yesterday, after it reported a 13 per cent jump in revenues to $390.7m (£240m) during its second quarter.

Yesterday’s recovery follows a drop of more than 40 per cent in the past 18 months following an embarrassing recall of Lululemon’s yoga pants that were deemed too see-through.

Profit during the last quarter fell to $69.7m, from $80.2m during the same period last year.