FollowLululemon Athletica Inc released a strong forecast for the year’s current quarter last Monday which impressively topped all market expectations. The company lifted its overall shares due to strong holiday sales specifically on their yoga-wear products, this is mainly due to the company’s recent performance comeback efforts.
Since June, overall shares skyrocketed to almost 75%, which jumped nearly an impressive 9% on the outlook. The company also forecasted an overall increase when it comes to comparable store sales to be at 6% to 7%, which is roughly doubled what analysts’ previously forecasted. Analysts stated that the rise can be attributed to more product variety and increased overall traffic.
Thomson Reuters StarMine stated that some of the company’s stock jumps were because of short-coverings, but StarMine’s recent data also showed that the sentiments of analysts have warmed significantly. In fact 14 out of these 34 analysts are now recommending investments in the company’s stocks.
Talmage Advisors’ Liz Dunn, stated that the stocks are sustainable and encouraging because it is being led by much traffic. Dunn added that the big improvement in overall traffic tells a very different story, and that the largest worry many individuals had was consumer reaction because of recent problems and abandon the brand.
