Lululemon: Fiscal 4Q Looking Up

Lululemon Athletica Inc. (NASDAQ:LULU) has improved its guidance for its fourth quarter for fiscal 2011 – diluted earnings per share are expected to be $0.47 to $0.49 compared to the previously forecast $0.40 to $0.42, primarily due to better revenue during this quarter.

Revenues are now expected to be in the range of $358-363 million versus earlier guided $327-332 million. Christine Day, lululemon’s CEO stated, “Our work throughout the year building our inventory position is driving our success in the fourth quarter. Guests have responded exceptionally well to the robust assortment and bright color palette for holiday, and momentum continues with the new spring product offerings.”

Here’s how the stock is reacting to the news:

Lululemon Athletica Inc. (NASDAQ:LULU): LULU shares recently traded at $60.82, up $7.38, or 13.81%. They have traded in a 52-week range of $32.78 to $64.49. Volume today was 5,071,271 shares versus a 3-month average volume of 3,475,140 shares. The company’s trailing P/E is 53.68, while trailing earnings are $1.13 per share.