Why Lululemon Athletica Inc. Stock Jumped Today

What: Shares of Lululemon Athletica were moving higher as the stock was boosted by a better-than-expected earnings report today, finishing the session up 10.7%.

So what: The workout-apparel maker's net incomerose modestly, by 6% to $0.85 per share, but that was enough to beat expectations at $0.80. Revenue, meanwhile, increased 17% to $704.3 million, also topping estimates of $693.4 million as holiday sales were strong. With the impressive quarter, Lululemon seems to be regaining some of the momentum it lost after a series of scandals plagued it a few years ago, including recalling of pants that were too sheer. Revenue growth of 17% in the recent quarter was also the fastest clip the company's seen in a quarter since 2013.

Now what:Looking ahead, the retailer's guidance was modest, as it projects revenue for the current year of $2.285-$2.335 billion, compared the analyst consensus at $2.33 billion, while management forecast earnings per share to grow 10% to 15% to $2.05-$2.15. Wall Street had expected EPS to meet the high end of that range.

However, the market was impressed with the company's goal of doubling revenue by 2020 as it outlined on the earnings call, growing from $2.1 billion last year to $4.2 billion. Like its peersNikeandUnder Armour, Lululemon plans to ride the "athleisure" wave and expand on key products and categories. Menswear remains a huge opportunity, growing 24% in the most recent quarter as the company has introduced a wider selection for men and even opened men's only stores. The company also expects e-commerce and international stores to be significant growth drivers, and will continue to open new stores in North America at an aggressive pace.If it can deliver on that prediction, the stock should be a winner over the long run.

The article Why Lululemon Athletica Inc. Stock Jumped Today originally appeared on Fool.com.

Jeremy Bowman owns shares of Nike. The Motley Fool owns shares of and recommends Lululemon Athletica, Nike, and Under Armour. 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.