Lululemon Regains Momentum on Strong Holiday Sales

  • Upscale yogawear company raised its fourth-quarter outlook
  • CEO is betting on new styles and trends to spark demand

A Lululemon store in New York.

Photographer: Yuki Iwamura/Bloomberg
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Lululemon Athletica Inc. expects fourth-quarter sales to surpass the market’s expectations, showing the upscale activewear brand is fending off upstart competitors and slower growth in consumer spending.

Revenue will rise between 11% to 12% and be in the range of $3.56 billion to $3.58 billion in the period, up from previous guidance for revenue of as much as $3.51 billion. That surpassed the average estimate of analysts compiled by Bloomberg.