Why Lululemon Athletica (LULU) Shares Are Plunging Today - Lululemon Athletica (NASDAQ:LULU)

Lululemon Athletica Inc LULU raised its fourth-quarter FY22 revenue outlook to $2.660 billion - $2.700 billion (consensus $2.67 billion), representing a 25% - 27% increase Y/Y. The previous guidance range was $2.605 billion to $2.655 billion.
Meanwhile, the company tightened its Q4 EPS guidance to $4.22 - $4.27 (consensus $4.30) from the previous outlook of $4.20 - $4.30.
Lululemon expects its Q4 gross margin to decline 90 – 110 basis points compared to its previous expectation for an increase of 10 - 20 basis points.
CEO Calvin McDonald, commented, "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."
Also Read: Wells Fargo Upgrades Lululemon Athletica On Sustained Momentum
Price Action: LULU shares are trading lower by 9.83% at $296.88 in the premarket on the last check Monday.
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Lululemon Athletica Plunges On Tightened Q4 Earnings Forecast, Gross Margin Contraction