Lululemon (NASDAQ:LULU) Soars Past Expectations, Surges

Shares in Lululemon Athletica Inc. (NASDAQ:LULU) exploded Thursday on a huge quarter which shattered expectations.

FBR commented on the results, saying, "lululemon athletica reported 3Q EPS of $0.36, above our estimate and consensus of $0.24. This compares to a 3Q09 EPS of $0.20. Total sales increased 56% to $175.8 million from $112.9 million last year. Net revenue from corporate-owned stores was $143.2 million for the quarter, an increase of 46% from $98.1 million last year. Comparable store sales increased 29% on a constant dollar basis versus last year’s 10%. Comparable-store sales on GAAP basis increased 32% versus last year’s 11%. Importantly, the two year trend accelerated meaningfully...Operating margin increased 560 bps y/y to 24.1%, significantly above our expectations...Total inventory was up 6.2% y/y compared to the 56% increase in sales...Robust outlook for 4Q."

FBR Capital maintains a "Market Perform" on Lululemon Athletica, which closed Thursday at $63.56, up $7.86, or 14.11 percent. Volume was close to eight times the normal 3-month daily average.