In spite of reports of slowing consumer spending and increasing competition in the activewear space, Lululemon Athletica (NASDAQ: LULU) handed in another stellar report for its first quarter of 2023. Revenue increased 24% year over year to $2 billion. Suffice to say, this is no longer a niche company that provides women's yoga attire.  

The shares have rallied 21% over the past year, bucking the bear market and handily beating the 4% gain of the S 500 index. But with inflation still eating into consumers' budgets, is Lululemon's valuation stretched to the max right now?  

Even better than Lululemon's 24% revenue increase last quarter was the earnings per share surge, up 54% year over year to $2.28. But is it really sustainable?  

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Source Fool.com