Lululemon stock jumps on higher profit forecast

Sporting apparel company Lululemon Athletica said Tuesday it expects to top its third-quarter profit forecast, thanks to rising sales.

Shares of Lululemon responeded with a gain of more than 15 per cent in TSX trading, rising $6.25 to $46.35.

The Vancouver company said its same-store sales which are sales at its outlets open at least 12 months are expected to post percentage growth "in the mid-30s."Lululemon's previous outlook for its same-store sales growth percentage was in the mid- to high-teens.

The company attributed its revised guidance primarily to strong sales volumes, with some extra benefit from the impact on sales of a strengthening Canadian dollar against the U.S. dollar.

Lululemon said it expects to beat its current profit outlook of five to six cents a share for the third quarter, even though the increase in sales is expected to be partially offset by the currency impact on sales and administration costs incurred in Canada.

Vancouver-based Lululemon had its initial public stock offering over the summer. Since then, shares have almost tripled from the IPO price of $18 US.