Lululemon Jumps On Strong Earnings, New Buyback Plan

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.