Profit at Lululemon Athletica, a Canadian yoga-wear retailer that has caught the eye of US Treasury Secretary Timothy Geithner, nearly doubled in the third quarter, and the company sees more growth ahead.
Lululemon’s shares soared as much as 20 percent after results were released. After hitting an all-time high of $66.66, the stock closed up 14.1 percent at $63.56.
The company’s shares have rocketed 111 percent this year.
In its Nov. 15 issue, Bloomberg BusinessWeek reported that Geithner, a runner and a basketball player, purchased $1,000 of Lululemon stock several years ago to teach his two kids about investing.
Assuming the Treasury secretary bought 100 shares in late 2008 when it traded under $10 a share, that stake today would be worth more than $6,300.
Bloomberg BusinessWeek said Geithner chose the company as a hedge against his now college-age daughter’s Lululemon purchases.
Lululemon’s third-quarter net was $25.7 million, or 36 cents a share, up from $14.1 million, or 20 cents a share, a year ago.