jentakespictures/iStock Editorial via Getty Images Lululemon Athletica (NASDAQ:LULU) updated guidance ahead of the athletic apparel company’s appearance at the ICR Conference in Orlando on Monday. Lululemon (LULU) expects to report Q4 revenue will be in the range of $2.660B to $2.700B vs. prior guidance for $2.605B to $2.655B and $2.67B consensus. EPS is now expected to be in the range of $4.22 to $4.27 for Q4 vs. previous guidance range of $4.20 to $4.30 and the consensus mark of $4.30. The company also said it now expects gross margin for Q4 to decline 90 to110 basis points compared to its previous expectation for an increase of 10 to 20 basis points. However, LULU now expects that it will further leverage selling, general and administrative expenses 100 to 120 basis points compared to its previous expectation of 30 to 50 basis points of leverage. CEO update: “We are pleased with our continued revenue growth and momentum in the business, as our teams navigate a dynamic macro-backdrop. In Q4, traffic remains strong across both physical and digital channels, and we anticipate delivering another quarter of solid earnings growth consistent with our updated EPS forecast. 2022 has been a strong year for lululemon, and we remain focused on the significant opportunities ahead as we continue to deliver on our Power of Three x2 growth plan.” Shares of LULU fell 9.98% in premarket trading to $293.98. Lululemon was on Seeking Alpha’s Stocks to Watch list this week.
