Lululemon Athletica Inc LULU shares are dropping despite reporting a third-quarter earnings and sales beat.

Earnings came in at 96 cents per share, beating estimates by 3 cents. Sales came in at $916.1 million, beating estimates by $18.09 million. This is a 22.5% increase over sales of $747.655 million the same period last year.

The company fourth-quarter EPS at $2.10-$2.13 versus the $2.13 analyst estimate, on sales of $1.315-$1.33 billion versus a $1.32 billion estimate.

"We're proud of the continued momentum in our business as we live into our vision to be an experiential brand," CEO Calvin McDonald commented in the press release. "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."

Highlights

• Revenues were up 23%
• Comps were up 16%
• Direct to consumer net revenue increased 29%

Lululemon shares traded down about 4.2% in Wednesday's after-hours session. The stock closed the regular session up 1.5% at $233.19 per share.