A stronger focus on product innovation and digital initiatives contributed to gains during Lululemon’s fourth quarter, but a slow start to the year impacted the company’s expectations for Q1 2017.

For the 13-week period ended January 29, 2017, Lululemon’s net revenue increased 12% to $789.9 million from $704.3 million in the fourth quarter of fiscal 2015. This exceeded analysts expectations of $783.32 million. The company reported $1.00 earnings per share for the quarter compared to $0.85 for the fourth quarter of fiscal 2015, however, this just missed the analyst consensus of $1.01.

The retailer’s profits rose 21% to $427.9 million.

Total comparable sales, which includes comparable store sales and direct-to-consumer, increased 8%. Specifically, same-store sales increased 6%, and direct-to-consumer net revenue jumped 12% to $164.3 million.

For fiscal year 2016, Lululemon’s net revenue increased by 14% to $2.3 billion from $2.1 billion in fiscal 2015. Total comparable sales increased 6%. Same-store sales rose 6%, and company-operated stores open for at least one…