Lululemon Athletica (LULU) surged 10.4% intraday following a strong fiscal Q3 earnings report and strategic announcements that buoyed investor confidence.

The athletic apparel maker reported earnings of $2.59 per share, surpassing estimates of $2.21, while revenue rose 7% year-over-year to $2.57 billion, beating expectations. The company also raised its full-year guidance, now forecasting EPS of $12.92-$13.02 and revenue of $10.96-$11.05 billion.

Key catalysts for the rally included CEO Calvin McDonald’s planned departure in January 2026, with interim co-CEOs appointed, and a $1 billion increase to its stock repurchase program. International growth, particularly a 46% sales jump in China, offset a 2% decline in the Americas.