Lululemon Athletica raised its revenue guidance for the current fiscal year following better-than-expected third fiscal quarter earnings. Revenue jumped 30% year-on-year to $ 1.45 billion, including 28% growth in North America and 40% in other countries. The figure was better than the market forecast of $ 1.4 billion. Like-for-like sales in the last quarter increased by 27% yoy. Lululemon opened 18 new stores last quarter, bringing the number to 552. Adjusted profit for the fiscal quarter ended October 31 rose to $ 1.62 per share from $ 1.16 per share in the comparable period a year earlier. The market was expecting a net profit of $ 1.40 per share.
Lululemon has improved its annual revenue forecast and now expects this figure to be $ 6.25-6.29 billion for the fiscal year ending in January, up from the previously expected $ 6.19-6.26 billion. Adjusted profit forecast is kept at $ 7.69- 7.76 per share. The company notes that the recovery in its performance has intensified in recent months, thanks to strong demand and increased brand awareness, but warned that the situation with the spread of the new omicron coronavirus strain carries risks for a new forecast.
We are confident that product enhancements such as the new Mirror product, effective marketing and increased online sales, coupled with customer loyalty and sports fashion trends will drive traffic, increase conversions and increase the competitiveness of lululemon athletica. The new Mirror, an online device and platform for training at home, can provide significant support to business in the long term. Thanks to strong quarterly financials and improved annual outlook, we raise our fair value for the company's stock from $ 515 to $ 523.
lululemon athletica inc. designs and retails premium athletic apparel and accessories for yoga, running and training. The brand mainly sells women’s wear, though also supports a growing men’s business. Lululemon leverages a vertical retail and digital strategy to design and sell its products and has developed several trademarked fabrics. Based in Vancouver, Canada, the company operated 521 lululemon banner stores globally in 2020. Lululemon has inspired a devoted customer following through its community-based marketing and events, strong corporate culture, and unique in-store experience.