Why lululemon athletica, Inc. Stock Popped Today

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What's happening?Shares of lululemon athletica jumped 10% Thursday after the yoga apparel specialist announced mixed third quarter results.

Why it's happeningQuarterly revenue climbed 10% year over year to $419.4 million, helped by 3% growth in total comparable store sales, which includes a 27% jump in lululemon's higher margin direct-to-consumer revenue. This translated to an 8.5% decline in net income to $60.5 million, and a 7% decrease in net income per diluted share to $0.42. Note lululemon repurchased 1.8 million shares of common stock during the quarter at an average cost of $40.49 per share. Analysts, on average, were expecting lower earnings of $0.38 per share on higher revenue of $424.8 million.

Lululemon also lowered fiscal year 2014 revenue guidance to a range of $1.765 billion-$1.780 billion, compared to its prior range of $1.780 billion-$1.800 billion. To blame, lululemon says, are West Coast port delays, a lower Canadian dollar, and delayed store openings. Lululemon simultaneously increased full-year adjusted earnings guidance to a per-share range of $1.74-$1.78, compared to its previous outlook of $1.72-$1.77. Analysts were modeling fiscal year 2014 sales and earnings of $1.79 billion and $1.77 per share, respectively.

In the end, lululemon's third quarter was far from perfect. But given its past challenges, investors are happy to see notable progress in total comps, which were flat last quarter and have risen just 1% for the first three quarters of the year.This also makes four successive quarters of "weak" guidance from lululemon -- so investors aren't exactly surprised there -- and the reasons given aren't indicative of a broader problem with lululemon's business. All things considered, it's good to see lululemon continuing to move in the right direction.

The article Why lululemon athletica, Inc. Stock Popped Today originally appeared on Fool.com.

Steve Symington owns shares of Lululemon Athletica. The Motley Fool recommends Lululemon Athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.