Lululemon raises full-year profit, revenue forecast

Canadian yogawear retailer Lululemon Athletica raised its full-year revenue and earnings forecast and reported better-than-expected first-quarter profit, helped by strong comparable store sales.

Shares of Lululemon moved higher in premarket trading following the report. (Click here for the latest quote.)

The company inched up its full-year earnings forecast to $1.86 to $1.91 per share from $1.85 to $1.90 and revenue forecast to $2.00 to $2.05 billion from $1.97 to $2.02 billion.

The profit forecast however was short of analysts' average estimate of $1.93 per share, while the revenue forecast compared with analysts' average estimate of $2.02 billion, according to Thomson Reuters I/B/E/S.

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Shares of the company, which has posted better-than expected profit for at least the past eight quarters, were up 2.8 percent at $63.25 in light premarket trading.

Lululemon is in the midst of a turnaround to improve quality, expand its product line and solve supply-chain problems, while laying the groundwork for faster international growth.

Total comparable store sales rose 6 percent on a constant dollar basis in the first quarter ended May 3 from 1 percent a year earlier.

The company has been trying to grow its men's apparel business in sync with women's, while also offering more fashionable apparel.

Lululemon's earnings rose to $47.8 million, or 34 cents per share, in the quarter from $18.98 million, or 13 cents per share, a year earlier.

Revenue rose about 10 percent to $423.5 million.

Analysts on average expected a profit of 33 cents per share on revenue of $418.9 million.

Lululemon shares had risen more than 10 percent this year on the Nasdaq.

Wall Street had expected Lululemon to deliver quarterly earnings per share of 33 cents on revenue of $419 million, according to a Thomson Reuters consensus estimate.

The women's athletic apparel space has grown more crowded as brands like Under Armour, Nike, and Gap's Athleta compete with Lululemon.

Meanwhile, Lululemon has increasingly focused its attention on building and growing its male "athleisure" business. The company's "ABC" pants for men helped grow its male same-store sales by 16 percent in the fourth quarter last year, Lululemon's CEO Laurent Potdevin told investors.

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Shares of Lululemon have outperformed the broader market, rising over 9 percent, despite a pullback in February after founder Chip Wilson announced he was stepping down from the company's board.

CNBC contributed to this report.