Lululemon's Earnings Outrun Expectations... and Show Why Its Stock Is a Buy

Lululemon Athletica (NASDAQ: LULU) reported strong results for its third quarter of fiscal 2021 (which ended Oct. 31) after the market close on Thursday.

Shares of the athletic-wear retailer, however, fell 1.8% on Friday. The market's slightly negative reaction can probably be largely attributed to the company lowering its full-year revenue guidance for Mirror, the home-connected fitness business that it acquired in July 2020. It's also possible that some investors might have been a bit disappointed that third-quarter revenue didn't beat Wall Street's revenue estimate by a larger margin.

Lululemon's stock is highly valued, so even relatively small blemishes in its quarterly reports can drive some short-term traders to take some money off the table.

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Source Fool.com