Lululemon Jumps On Strong Earnings, New Buyback Plan

By Sue Chang Markets MarketWatch Pulse

Shares of Lululemon Athletica Inc. soared in Wednesday's extended session after the yoga apparel company posted better-than-expected earnings and announced a new buyback plan. Lululemon reported its third-quarter earnings rose to $68.3 million, or 50 cents a share, from $53.2 million, or 38 cents a share, a year earlier. Excluding certain items, Lululemon would have earned 47 cents a share. Revenue grew 13% to $544.4 million and total comparable sales, which include both store and direct-to-consumer sales, rose 7%. Analysts surveyed by FactSet had forecast the yoga-wear maker to earn 43 cents a share on revenue of $541 million. In the fourth quarter, the company expects earnings per share of 96 cents to $1.01 and revenue in a range of $765 million to $785 million. Wall Street is expecting EPS of $1 and revenue of $788 million. The company's board also approved a new share repurchase program of up to $100 million. Lululemon shares surged 10% after hours.

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