Lululemon: 2 Things That Could Push the Stock Even Higher -- ICYMI

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A lot is priced into Lululemon (LULU) - Get Report shares now, after the fashionable athleisure retailer's earnings beat sending shares soaring. 

The stock rose 15.02% Thursday to $168.86 a share Thursday. Lululemon, RealMoney's Stock of the Day, reported earnings per share of $1.85 on an adjusted basis, beating analyst expectations of $1.75. For the current quarter, the company expects EPS of between 68 cents and 70 cents, ahead of expectations of 67 cents. 

Even after the stock roared, there could still be more upside, given two categories in which it still has room to grow. 

Men's Apparel

Sales of women's apparel rose 21% year-over-year, which maybe doesn't come as a surprise for a retailer that focuses on young women. But the men's category could be a huge boost as well. Sales of men's clothing rose 24% year-year, but RealMoney's Kevin Curran notes that Lulu will either have to find a way to get men into the stores on a sustained basis, or get them to shop heavily online. 

International

Lulu has yet to build a meaningful international business, as it's still expanding in the U.S. But international sales will be a key to achieving the company's ambitious goals. "Growth will need to be driven through internal drivers and international expansion plans," wrote D.A. Davidson & Co. analyst John Morris. "As management noted, China remains a key market for LULU, which would be paramount to the company's aspirations to become a $4.0B brand."

Related. Red Hot Lululemon Needs Male Customers to Keep Momentum Moving

Related.Chart of the Day: Has Lululemon Stock Stretched Too Far?

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