Lululemon Sharply Higher After Stretching Full-Year Forecast

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Lululemon Athletica inc. (NASDAQ: LULU) shares were trading sharply higher by $3.78 at $65.30 in Tuesday's session. The catalyst for the rally is a Q1 beat for EPS ($0.34 vs. $0.33 estimates) and revenue ($423.55 million vs. $418.94 million estimates).

The company also lifted forecasts for the year for both EPS and revenue for FY2015.

After a higher open ($65.71 vs. Monday's close of $61.52), it retreated to $64.81 and resumed the rally.

Related Link: Lululemon Bets Big On Millennial Moms

So far, it has reached $66.77 before pulling back to the $66 level. That marks the highest level for the issue since it peaked at $67.66 on April 27.

Today's rally is taking place on much heavier than average volume. With four hours remaining in the session, it has traded 7.8 million shares compared with its 20-day average of 2.52 million.

Editor's note: At time of publication, shares traded at $66.36, up $4.84 (7.8 percent).