Lululemon Athletica Inc. (LULU) delivered a second quarter earnings beat on Thursday, reducing fears of an "athleisure" slowdown after raising its full-year outlook.

"Our performance reflects the growing global consumer response to Lululemon's unique position as the leading brand that defines an active, mindful lifestyle. Through continuing to deliver category-defining product innovation, we are creating experiences that our guests, both existing and new, desire. This strong brand momentum reinforces my confidence in our long-term strategy," said Lululemon CEO Laurent Potdevin said after the report.

The positive earnings report has the company well on its way to achieving its $4 billion in revenue by 2020 target, according to Potdevin. One of the reasons for the earnings beat? A growing men’s apparel segment, which is expected to make up 25 percent of company sales by 2020.

“Men’s is still one of our best-kept secrets,” said Potdevin.

The innovative Canadian apparel company delivered second quarter earnings of $0.36, beating analyst estimates by just a penny, but sales came in nearly $14 million higher than estimates at $581.1 million. Comparable sales were up two percent in the quarter.

Shares of Lululemon soared nearly seven percent after the earnings beat. The company raised its 2017 full year sales outlook by $15 million.

Worrisome second quarter earnings from Foot Locker Inc. (FL), Dicks Sporting Goods Inc. (DKS) and Finish Line Inc (FINL) in August, which saw each company’s shares drop over 20 percent following each report had investors signaling the start of the end of the athleisure trend. Reports that denim is starting to come back into fashion could spell trouble for Lululemon, but the two trends can coincide.   

On the company earnings call, there were zero mentions of a difficult industry environment. Lululemon continues to respond to consumers by expanding their offerings and pushing forward into new markets. China also remains an extremely interesting growth opportunity for the brand.

While the traditional sporting good retailers are notable, it is largely due to Nike Inc.'s (NKE) decline alongside many of the biggest brands preference and focus to grow a direct to consumer business. Lululemon grew its direct to consumer net revenues by 29 percent in the quarter.

With new opportunities internationally, a growing men’s segment, and a strong direct to consumer growth, Lululemon’s second quarter results are easing fears of an athleisure slowdown as the brand continues to lead the industry.

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