The shares of Lululemon Athletica Premarket trades Wednesday saw a nearly 8% increase in NASDAQ shares after the company released a positive Q1 forecast and reported an adjusted Q4 adjusted earnings.

Retailer of apparel reported an adjusted EPS value of $3.37. This is up from $2.58 for the same period last year, and beats consensus estimates at $3.27 per share. The company reported an adjusted EPS for this quarter of $3.36, an increase of $2.52 per shares in the prior year.

The net revenue was $2.13 Billion, an increase of 23% YoY. This is almost the same as analyst estimates of $2.14 Billion.

To surpass analyst expectations of +11.9%, direct to consumer (DTC), revenue increased 16% during the quarter. Comparable sales in constant currency increased by 22% compared with +20% YoY, and the consensus estimates of +25.1%.

Lululemon Athletica anticipates that EPS will be in the $1.38-$1.43 range for the quarter. This is higher than the $1.27 share analyst estimate. This retailer anticipates Q1 net sales of $1.53 to $1.55 Billion, which is higher than the consensus projection of 1.27 billion.

Lululemon anticipates that EPS will range from $9.15 to $8.35 for the entire fiscal 2022. This is higher than the $9.11 share. The expected net revenue range for FY2022 will be between $7.49 billion to $7.62 billion. This is higher than the $7.21 billion.

A new program for stock buybacks of up to $1 million was also approved by the company’s board.

Brooke Roach, analyst at Goldman Sachs reiterated a Buy rating. These results were better than expected and showed that LULU’s brand momentum is the strongest in its class.

F4Q leaves us with a better conviction about LULU’s many drivers for sustainable growth, which allow the company to grow market share despite difficult competition. They include product growth, brand extension (footwear/golf/tennis), store rollout speed and digital strength. The April 20th Investor day will include more details on these and other drivers. We also expect to discuss the potential margin for some key business lines (footwear/international). Roach stated in a client letter that despite the industry’s macro challenges, LULU’s brand momentum and best-in class brand will allow it to grow in EPS.

Kimberly Greenberger from Morgan Stanley is optimistic about LULU in the wake of her results.

We are impressed with the acceleration in the business following management trimming initial 4Q21 guidance to the low end of its previous range in early January as a result of higher-than-expected freight costs & Omicron impacts to store capacity & traffic, Greenberger wrote in the report.