Lululemon Athletica (NASDAQ: LULU) stock surged 8.8% after reporting earnings exceeding expectations, with $2.59 per share on nearly $2.6 billion in sales in Q3, driven by 7% sales growth. International sales saw a 33% increase, while U.S. sales declined 2%.

Despite beating forecasts, Lulu’s earnings per share dropped 10% year over year, pointing to potential profitability issues with international sales. CEO Calvin McDonald emphasizes focus on improving U.S. business amid plans for international expansion. Q4 sales expected to decline 2%.

Lululemon forecasts full-year sales of $11 billion and earnings between $12.92 and $13.02, translating to a valuation of 16 times earnings. With CEO stepping down in January, investors are cautious. Motley Fool Stock Advisor suggests 10 alternative stocks for investment opportunities, excluding Lululemon.

Read more at Yahoo Finance: Why Lululemon Stock Popped Today