Lululemon Athletica raised its forecast for annual sales and profit on the strength of sales for its pricey activewear.
Shares gained 13% in extended trading.
Contributing to better-than-expected quarterly results were an easing of air freight costs and tighter inventory control as well as a strong rebound in China.
The move toward more comfortable clothing and activewear since the pandemic has taken hold with most Americans, especially among a higher-income customer base.
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"We've seen no change in our (customer) behavior in terms of frequency of purchase or engagement," said Lululemon CEO Calvin McDonald on a post-earnings call.
Lululemon saw inventories rise a smaller-than-expected 24%. The company expects growth of about 20% at the end of the current quarter.
Revenue from China rose 79% helped by the easing of that country's strict COVID-19 curbs.
North America sales jumped 17%.
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Net revenue increased 24% to $2 billion, beating estimates of $1.93 billion, according to Refinitiv IBES.
Lululemon now expects full-year 2023 revenue between $9.44 billion and $9.51 billion, compared with $9.30 billion to $9.41 billion projected earlier.
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It forecastS annual profit between $11.74 and $11.94 per share, up from $11.50 to $11.72 earlier.
Reuters contributed to this report.
