Lululemon stock rockets on positive results

Lululemon Athletica (LULU) shares rocketed about 14% on Thursday after the yogawear maker reported second-quarter profits that beat expectations -- thanks in part to higher-than-expected online sales -- and raised its forecast for the year.

Shares closed up $5.39 at $43.73.

For the Vancouver-based company, the positive news couldn't come soon enough. In an embarrassing quality snafu last year that led to a high-profile executive reshuffle, the company had to recall its pricey, black Luon yoga pants after buyers found they were way too transparent.

Net income fell to $48.7 million, or 33 cents a share, in the three months ended Aug. 3, from $56.5 million, or 39 cents, a year earlier, the company reported. Net revenue for the quarter increased 13% to $390.7 million from $344.5 million a year ago. Analysts had expected $376.8 million in revenue and just $0.29 in earnings per share.

Lululemon raised its forecast for the year by a penny to $1.72 to $1.77 a share.

"We are pleased to be on track with the implementation of our strategic road map and are starting to see the results of our work across product, brand and international expansion," CEO Laurent Potdevin said in a statement.

Potdevin has tried to add more fashion and seasonal attire and the company has worked to improve overseas expansion. A high-profile fight with co-founder Chip Wilson resulted in Wilson selling half of his stake in the company and stepping down as chairman.

"While there is still much to be done, we are making meaningful progress on building a scalable foundation for our next phase of global growth," Potdevin said in the statement.

The company ended the quarter with 270 stores.