Lululemon Sharply Higher After Stretching Full-Year Forecast

em>Joel Elconin is the co-host of

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Lululemon Athletica

shares are 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. Est, $0.33) and for revenue $423.55M vs. $418.94M). In addition, the company lifted forecasts for the year for both EPS and revenue for FY2015. After a higher open, ($65.71 vs. Monday's close $61.52) it retreated to $64.81 and then resumed the rally, So far, it has reached $66.77 before pulling back to the back 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 7.8M shares compared with its 20 day average of 2.52M.