The economic realities of the moment — with frightened consumers, high inflation and high rates of interest — don’t appear to apply to Lululemon Athletica Inc.

Shares of the buzzy energetic company shot up 13.7 percent on Thursday to $373.37 after it continued to grow rapidly, topping first-quarter profit and sales projections and raising its outlook for the yr.

That puts Lululemon’s market capitalization at about $47.5 billion, one in every of the best valuations in all of fashion, although still lower than half of energetic leader Nike with a market cap of $159.3 billion. 

But the concept actually seems for Lululemon to catch up.

The corporate’s earnings jumped 53 percent to $290.4 million, or $2.28 a share — 32 cents ahead of the $1.96 analysts projected, based on FactSet. And revenues for the quarter ended April 30 jumped 24 percent to $2 billion from $1.6 billion, nearly $77 million above analysts’ expectations. 

Comparable-store sales increased 17 percent on a continuing currency basis, showing the corporate is growing recent and existing doors. Lululemon opened 83 stores over the past yr for a complete of 662 locations.

Chief executive officer Calvin McDonald stressed the importance of those stores — and the communities they anchor — to the Lululemon model on a conference call with analysts.   

McDonald said the corporate ramped its community events back to pre-pandemic levels and recently revealed its Further Initiative featuring an ultramarathon for girls on International Women’s Day next March. 

The brand also connects with its Lululemon Studio app — which grew out of the corporate’s acquisition of Mirror, which proved to be a rare stumble and led to a $443 million write off last quarter. 

“We view our community model as one in every of our biggest competitive benefits with connection points across each the physical and digital, our ecosystem powered by membership supports our leadership position in developing and cultivating omni-guest relationships,” McDonald said. “We engage with guests in ways which are greater than just transactional by creating deeper connections and more holistic relationships. This in turn builds our brand awareness, drives purchases and contributes to our strong financial performance.”

McDonald argued that the drivers of the corporate’s business are each unique and stable and include a direct to consumer omni operating model, product innovation and flexibility with looks that may be worn for each workouts and work. 

Numerous brands have similar claims, but are matching Lululemon’s results. 

“If we zoom out, the drivers of our business pre, during and post the pandemic are still very relevant today,” McDonald said. “That’s the importance of product versatility because it pertains to apparel, guests living an energetic and healthy lifestyle, convenience expected by our guests — which really speaks to our strength in an omni operating model that we’ve been investing in for a few years — after which finally deal with each physical, mental and social well-being all supporting the brand positioning.” 

It seems all of that adds as much as more for Lululemon. 

The corporate boosted its outlook for the yr and is now searching for earnings per share starting from $11.74 to $11.94, up from the $11.50 to $11.72 projected in March. Likewise, the revenue projection crept as much as a spread of $9.44 billion to $9.51 billion, up from $9.3 billion to $9.41 billion.