On Thursday's Market Foolery, host Chris Hill and Motley Fool One analyst Jason Moser dip into lululemon athletica's (NASDAQ:LULU) first-quarter report. 

Chris explains that, although the first-quarter profit was good, the clothing company lowered guidance and called 2014 a "transitional year." The stock ended the trading day down nearly 16%. Jason says that the stock has been priced to reflect expectations of rampant growth. The quarter wasn't bad, he adds, and excluding the $30 million repatriation charge that Lululemon paid for moving $500 million back into the U.S., the company actually beat expectations. Yet he concedes that when management terms a year "transitional," it's code for "look out below." However, Jason sees the company's stock buyback plan as a solid strategy that could work, and he considers the brand not broken, but rather in a period of reestablishment.

Chris Hill has no position in any stocks mentioned. Jason Moser has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.