Lululemon stock surged 14% after strong Q3 results, exceeding estimates with $2.56 billion in sales, driven by international growth. CEO to step down, $1 billion buyback plan announced.

Lululemon raises full-year guidance to $11.05 billion in sales and $13.02 EPS, despite a drop in operating margins. ROIC remains strong at 32%, with 14 new stores opened in Q3.

Despite lower free cash flow conversion, Lululemon stock holds Zacks Rank #3. Potential for growth with international and digital sales expansion, but operational efficiency needs improvement. Valuation at 14X forward earnings is attractive.

Read more at Nasdaq: Will Lululemon Stock Keep Rebounding After Strong Q3 Results?