By Ananya Mariam Rajesh

(Reuters) –Lululemon Athletica, which on Tuesday projected full-year profits and revenue higher than estimates due to continued demand for athletic wear even though people are returning to work, said that it will increase the prices of some products.

The shares of this yogawear manufacturer rose by about 8% during extended trading. They also reported better-than-expected fourth quarter adjusted earnings. This was despite the fact that the store hours were reduced due to Omicron infection.

Many consumers prefer casual and comfortable clothing since the outbreak of the pandemic. This has helped brands like Lululemon, whose sportswear and athleisure have become an integral part of every day fashion.

“We will be making modest price increases throughout the year… In an earnings call, Calvin McDonald, chief executive officer of McDonald’s said that only a small percentage of styles are affected. This will offset the increasing pressure on average unit price.

David Swartz, Morningstar Research analyst, stated that Lululemon’s premium pricing is not a new thing. They can easily increase the price of their products without having to worry.

Lululemon projected full-year 2022 revenues between $7.49 and $7.62 Billion, while analysts anticipate $7.30 Billion, according to IBES data available from Refinitiv.

The full-year profits were also projected at $9.15 to $9.35 per shares, as opposed to the $9.06 pershare estimates.

“Raising prices benefits the company, particularly as they continue to be impacted by supply chain issues.” Matthew Jacob, Senior Analyst at M Science, stated that prices can be raised because they aren’t as publicized.

Lululemon posted a profit of $3.37 per share for the quarter that ended January 30, compared to $3.28 estimates.