Lululemon raised its fourth-quarter guidance, citing stronger-than-expected holiday sales. The athleisure retailer now anticipates net revenue near the top of its previously issued range of $3.50 billion to $3.585 billion. Diluted earnings per share are also projected to land at the high end of the company’s $4.66 to $4.76 forecast.

Gross margin, SG&A expenses, and the effective tax rate remain unchanged. CFO Meghan Frank attributed the boost to robust festive trading. She noted the company is still focused on executing its plan to improve performance in the U.S. business.

Analysts had modeled revenue around $3.58 billion, so the update suggests Lululemon is meeting those lofty expectations despite a promotional retail environment. Management will present these figures at the ICR Conference in Las Vegas this week. Investors will be listening closely for updates on inventory levels and 2026 strategies, especially as competition from brands like Nike and newer direct-to-consumer players heats up.