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Investors like a zen Lululemon

December 6, 2012: 1:21 PM ET

Investors are rewarding athletic apparel maker Lululemon (LULU) for remaining zen.

The company, known for its fashionable yoga pants, beat analyst expectations with its third quarter profits and revenues. The only hiccup: guidance. The company said it expects sales to grow in the high single digits in the fourth quarter. That's good for most retailers but points to a slowdown for Lululemon.

Investors didn't seem too worried about a slowdown. The stock traded up more than 4% Thursday. And several traders on StockTwits admired the company's conservatism.

retail_guru
Mind you, given multiple, $LULU needs to keep expectations in check. Under-promise, over-deliver & keep multiple up... Trick from $RL book

reformedbroker
If they bully $LULU today on conservative guidance, I probably buy. Got your back, girl.

Even with a slowdown in sales, Lululemon still looks good to many investors once they look around at other brands and retailers.

TXplunger
$LULU only retail with higher sales than their $1900/square foot is AAPL

While Apple (AAPL) may not be the ideal comparison this week, a hot brand is a hot brand. Longer-term what could really help the company's growth prospect is the emerging male yogi. More men in Lululemon's yoga pants? A new clientele.

firstadopter
$LULUcall: mens Q3 12% of overall sales, comps very similar with womens

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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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