(Reuters) – Lululemon Athletica Inc forecast first-quarter revenue above analysts’ estimates on Tuesday, as it expects sustained demand for leggings and sports bras from consumers looking for comfortable home-exercise apparel.
The COVID-19 health crisis has pushed more people to exercise at home, creating a surge in demand for apparel from Lululemon and other athletic wear makers.
However, the company warned that a resurgences in COVID-19, including new variants, could cause additional store closures, lead to lower consumer demand and disrupt its supply chain.
Lululemon said it expects first-quarter revenue of $1.10 billion to $1.13 billion, compared with analysts’ average estimate of $999.5 million, according to IBES data from Refinitiv.
Net revenue rose 24% to $1.73 billion in the fourth quarter, beating analysts’ estimates of $1.66 billion.
(Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Vinay Dwivedi)
