In what could be described as a typical scenario in the current environment, Lululemon (LULU) reported strong quarterly results which beat expectations but warned of a light period ahead.

In FQ3 (October quarter), the athleisure specialist generated revenue of $1.45 billion, amounting to a 29.5% year-over-year uptick, in the process coming in $10 million above Street estimates.

The beat was on account of a robust showing in the men’s business, for which sales increased by 44% from the same period a year ago, while the core womenswear business’ revenue increased by 25% year-over-year. The company said its goal of doubling the menswear segment’s 2018 revenues by 2023 is taking shape much faster than anticipated.

On the bottom-line, adjusted EPS of $1.44 also came in ahead of the Street’s call - by $0.04.

While the company raised its outlook for the full year on the back of Q3’s display, the company’s Q4 outlook came in below Street expectations. Lululemon indicated it thought the strong demand in the quarter could be down to earlier holiday shopping than usual. Supply chain snags have also resulted in a lack of goods for some categories during key shopping days.

However, according to website traffic data, the outlook might be conservative. Unique visitors in November - Q4’s first month – jumped sequentially by 57%, from 4 million to 6.3 million, further confirming B. Riley’s Susan Anderson assertion that the continued success of the ecommerce channel - up by 21% and representing 40% of total revenue - is indicative of the brand’s appeal.

“E-comm continues to see strong results despite consumers returning to the store to shop, which we believe is an indication of how popular the brand is due to quality product and easy to shop across all channels,” said the 5-star analyst. “We continue to be buyers as we believe there remains meaningful growth ahead, particularly as the international market ex-Canada only represents ~16% of sales and has seen strong brand acceptance in major markets in EMEA and Asia including China.”

Accordingly, Anderson reiterates a Buy rating on LULU shares along with a $548 price target, suggesting room for 35% upside from current levels. (To watch Anderson’s track record, click here)

Most analysts agree. Based on 12 Buys vs. 4 Holds, the stock boasts a Strong Buy consensus rating. According to the $475.63 average target, investors are looking at returns of 17% over the one-year timeframe. (See LULU stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.