Lululemon Athletica Inc (NASDAQ:LULU) shares are on sale Monday after the company narrowed its holiday quarter outlook. Short Hills Capital's Steve Weiss took advantage of what he expects to be a flash sale by buying shares of the athleisure company.

"It's had some disappointments, last quarter on margins as well, and it bounces back. The market loves it," Weiss said Monday on CNBC's "Fast Money Halftime Report."

What To Know: Weiss jumped into Lululemon with shares stretched out because of the resiliency the stock has repeatedly shown.

"Anytime it's gotten hurt like this, it's been a buying opportunity," Weiss said.

He told CNBC he put on a pretty large position because he views the selloff as "ridiculous." Lululemon shares traded down to the $280 level in Monday's premarket session before bouncing back. The stock was hovering just under $300 at last check.

Related Link: Lululemon Athletica Plunges On Tightened Q4 Earnings Forecast, Gross Margin Contraction

Although he acknowledged that Lululemon has some competition, it's "not real," he said, adding the company took significant share during the pandemic.

Companies like Peloton Interactive Inc (NASDAQ:PTON), Zoom Video Communications Inc (NASDAQ:ZM) and Teladoc Health Inc (NYSE:TDOC) are reverting back to normal and even falling below pre-pandemic growth rates, but Lululemon attracted an entirely new group of buyers and those buyers are continuing to drive the name higher, he said.

Weiss told CNBC that Lululemon's continued growth moving forward justifies its lofty valuation. Lululemon shares are currently trading around 28 times forward earnings, according to Benzinga Pro.

See Also: Morgan Stanley Thinks Retailers Will Ramp Up Discounting In January

LULU Price Action: Lululemon has a 52-week high of $410.70 and a 52-week low of $251.51.

The stock was down 9.96% at $296.46 at the time of writing.

Photo: Phillip Pessar from Flickr.