Business

Yoga wear firm shares soar 10% after earnings growth forecast

Lululemon window Image copyright Getty Images

Shares in Yoga-wear maker Lululemon have jumped 10% after the company said it expected improved margins and sales this year.

The Canadian company also reported better than expected quarterly profit helped by strong sales during the holiday shopping period.

Lululemon's fourth quarter gross profit rose 14% to $354.5m (£247m).

The firm's chief financial officer said plans to improve profitably were "coming into sharper focus."

Lululemon said it planned to improve margins by reining in costs through a shift to ocean freight from air freight and planning orders better to ensure fewer cancellations.

"On the surface, Lululemon's final quarter numbers look fairly solid, especially when compared to the rather lacklustre performance during the prior quarter", said Neil Saunders, chief executive of Conlumino.

"However, while there has been a pickup in sales momentum, the underlying figures continue to show signs of weakness" he added.

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