Apparel retailer Lululemon Athletica said on Monday it expects fourth-quarter revenue and profit to be toward the high end of its previous forecast range on the back of strong demand during the holiday season.

Shares of the company were up about 1% in premarket trading. They had fallen nearly 46% in 2025.

The positive forecast comes as Lululemon contends with challenges, including a proxy fight launched by its founder Chip Wilson, while striving to reignite demand from young and affluent shoppers amid stiff competition and pressure from activist investor Elliott Management.

The athleisure maker had previously projected fourth-quarter revenue to be between $3.50 billion and $3.59 billion, and earnings per share in the range of $4.66 to $4.76.