Leisurewear group Lululemon Athletica Inc (NASDAQ:LULU) delivered a mixed first quarter with sales ahead of market expectations though profits missed.
The Canadian group has been criticised recently for losing momentum by its founder Chip Wilson, but analysts said the sales improvement suggested its new ranges of 'athleisurewear' were gaining support among customers.
The group underlined its optimism by raising its revenue forecast for 2016 overall and it now expects sales of US$2.31bn-US$2.35bn against is previous forecast of US$2.29bn-US$2.34bn.
Lulelemon is competing in the athleisure, leisure clothing that looks like sportswear, market with giants such as Nike and Under Armour and even though sales rose 17% to US$496mln in the quarter to March, earnings were 5% lower at $45.3mln.
Wilson, who still holds a 14.2% stake, has called for the board to be more accountable but the company responded that this was a “strong operational performance” in the past three months.
Shares rose by 1% in pre-market trading to US$69.60.