Lululemon is soaring after beating on earnings and raising its guidance

Lululemon shares jumped by as much as 12% in after-hours trading on Wednesday after the company reported third-quarter earnings that were stronger than analysts had expected.

The maker of yoga clothing said it earned $0.47 per share in an adjusted basis, topping the forecast for $0.43. Its net revenues rose 13% to $544.4 million.

Lululemon raised its full-year guidance, and its outlook for the fourth quarter was as strong as analysts had forecast. The company saw fourth-quarter earnings in a range of $0.96 to $1.01, in line with the forecast for $1. Net revenue was estimated in a range of $765 million to $785 million, just below the forecast for $787 million.

Lululemon is poised to continue benefitting from strong demand for its leggings, according to Piper Jaffray. The bank’s semiannual report on teen spending showed that leggings/Lululemon retained its place as the top fashion trend among teens.

The company said its board had authorised a $100 million share buyback program.

Lululemon shares gained 14% this year through the market close on Wednesday.

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