Investing.com -- Lululemon athletica shares rose 6% in extended trading on Thursday after the athletic apparel maker posted stronger-than-expected third-quarter results and expanded its stock repurchase program. Though its fourth-quarter outlook came in below Wall Street’s expectations.

The company reported Q3 earnings of $2.59 per share, beating analyst estimates by 38 cents. Revenue rose 7% to $2.6 billion, topping the $2.48 billion consensus. Comparable sales increased 1%, or 2% on a constant-currency basis.

The company also announced that Calvin McDonald will step down as chief executive on Jan. 31, 2026, after more than six years in the role. He will serve as a senior advisor through March, while the board works with an executive search firm to identify his successor.

CEO McDonald said the company is “beginning to make progress” in improving its U.S. performance and remains encouraged by early holiday season trends.

“We continue to expect to see the impact of this work in 2026,” he added in the statement.

The board also authorized a $1 billion increase to Lululemon’s stock buyback plan, bringing remaining authorization to about $1.6 billion as of Dec. 11.

Despite the Q3 beat, Lululemon issued softer-than-expected fourth-quarter guidance.

The company forecasts Q4 EPS of $4.66 to $4.76, below the $4.97 analysts expected. Revenue guidance of $3.50 billion to $3.59 billion brackets but does not exceed the consensus of $3.59 billion. The company has been navigating weakness in the U.S. market and the loss of the prior year’s 53rd week.

For the full year, Lululemon now expects revenue of $10.96 billion to $11.05 billion and EPS of $12.92 to $13.02. Guidance continues to factor in an estimated $210 million hit to operating income tied to higher U.S. tariffs and the removal of the de minimis exemption.