According to Lululemon, third-quarter inventories increased
In extended trading, shares of the athletic wear manufacturer fell 10%.
But the business increased its full-year revenue and profit projections, indicating robust demand from wealthy Americans for its pricey yoga pants, running shorts, and belt bags.
Consumers at the top of the income scale, who have not been discouraged by years of high inflation, have endured price rises from businesses like Lululemon, contributing to steady demand for their cozy clothing.
The yogawear manufacturer, like many other American businesses, had been boosting prices on a few products to make up for rising freight and manufacturing costs brought on by the ongoing supply chain issues that plague the entire sector and the conflict in Ukraine.
The company has increased its previous prediction of $7.87 billion to $7.94 billion and anticipates full-year 2022 sales between $7.94 billion and $7.99 billion.
From its previous projection of $9.82 to $9.97, Lululemon now expects its 2022 profit to be between $9.94 to $10.04 per share.
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