Analysts remain optimistic on the future of Lululemon, despite challenging economic headwinds that could be on the horizon.

The Canadian athletic fashion brand reported fourth-quarter revenue guidance in the range of US$3.14 billion to $3.17 billion, which fell below expectations as high-income shoppers focus on entertainment and travel.

Still, Wedbush analyst Tom Nikic remains bullish on the company.

“I think there was a lot to like in the earnings print last night,” he told BNN Bloomberg in a television interview on Friday.

“Their Q4 guidance, they insinuated on the call that it’s very, very conservative. They’re very happy with their performance over the Black Friday-Thanksgiving weekend. All in, they just seem to have a lot of momentum in their business.”

On Friday morning, shares of Lululemon reached an all-time high of US$479.75.

Analysts at Stifel are also optimistic about the brand’s prospects.

“We view the (fourth-quarter) outlook as conservative and encourage investors to use any weakness in shares as a buying opportunity,” the company wrote in a note to investors.

“Considering the growing contribution of international (outside North America now 22 per cent of revenue) and impressive growth trajectory, we think the market is underappreciating the growth contribution and potential.”

Analysts with Citi also rate Lululemon as a buy, pointing to the company’s closing inventory gap and sales growth in China as reasons to be optimistic.

“Stepping back, (the third-quarter) highlights LULU’s position as a market share winner despite a choppy macro backdrop,” the company wrote in a note.

Jessica Ramirez, senior analyst at Jane Hali and Associates, is taking a more cautious approach, but said the outlook is the same a most other fashion brands.

“We’ve seen some strong results in some cases and some mixed, but going forward – just because of the climate we do have with the consumer and around the globe – it is taking a cautious approach overall,” she told BNN Bloomberg in a television interview on Thursday.

“Lulu is a strong brand overall, so we can still see with the numbers, even despite the climate that we’re going through, this brand continues to deliver strong results and has the customer coming back into their doors.”