Lululemon Continues to Conquer, but Shares Are a Little Pricey

Though at times it seems unstoppable, lululemon athletica (NASDAQ: LULU) saw its shares fall in after-hours trading on Wednesday, despite reporting stellar growth. Fourth-quarter guidance was weaker than expected, but the negative reaction has more to do with the valuation. The shares carry such a premium that investors are leery of getting involved. If you can stomach the pricing, Lululemon's comp-store sales are exceptional and have been for a while.

As for its guidance, which accounts for the fewer number of shopping days between Thanksgiving and Christmas this year, Lululemon certainly has the ability to beat it. Investors simply have to decide whether they're comfortable with the premium, as this is likely to remain a pricey stock.

Source Fool.com