Shares of yoga wear maker Lululemon gained 15 percent Thursday after it posted better-than-expected quarterly earnings and boosted its outlook.
On Wednesday, the Canadian athletic apparel retailer reported fiscal third-quarter earnings of 47 cents per share on revenue of $544 million. Analysts expected a profit of 43 cents a share on revenue of $540 million, according to Thomson Reuters consensus estimates.
"Our third quarter results demonstrated strong execution across all areas of our business as we delivered continued topline momentum, outperformed in gross margin and inflected meaningfully in EPS," CEO Laurent Potdevin said in the earnings release.
Potdevin added that while the company initially experienced "mixed" sales results during the holiday season, they have since improved.
The company updated its full-year earnings outlook and now expects that figure to be between $2.18 to $2.23 a share. It had previously expected earnings between $2.07 to $2.15 a share.
Lululemon also said its board of directors have approved a stock repurchase program for up to $100 million of its common shares. It said the timing of the shares to be repurchased will depend on market conditions and other factors that follow SEC requirements.
With Thursday's gains, the stock is up more than 31 percent year to date.