Lululemon Athletica (NASDAQ: LULU) reported its third quarter financial results after the closing bell on Wednesday. The retailer reported better-than-expected results, however, provided a weaker-than-expected forecast. Lululemon shares slipped by 3% on Thursday morning.

For the quarter, Lululemon reported earnings of USD 0.96 per share on revenue of USD 916 Million. Refinitiv analysts anticipated earnings of USD 0.93 per share on revenue of USD 899.7 Million.

Net revenues improved by 23% year-over-year, driven by total comparable sales increase of 16%. Comparable store sales increased by 10%, while direct to consumer net revenue increased by 29%.

Direct to consumer net revenues represented 26.9% of Lululemon’s total quarterly revenue compared to 25.3% in the same period a year ago.

Calvin McDonald, Chief Executive Officer, commented: "We're proud of the continued momentum in our business as we live into our vision to be an experiential brand. We are successfully executing on our Power of Three growth plan as we create authentic connections with new and existing guests around the world. I'd like to thank our amazing teams for achieving this strong level of performance."

For the fourth quarter, Lululemon said it expects earnings to fall in between USD 2.10 to USD 2.13 per share on revenue in the range of USD 1.315 Billion to USD 1.330 Billion. The Company also expects total comparable sales increase in the low double digits. Analysts are calling for earnings of USD 2.13 per share.

And as for fiscal 2019, Lululemon is expecting earnings in the range of USD 4.75 to USD 4.78 per share on revenue in between USD 3.895 Billion to USD 3.910 Billion. The Company also expects total comparable sales increase in the mid teens.

Despite the weaker forecast, Lululemon shares are still up 88% this year.