Lululemon, in updating its fourth-quarter guidance ahead of the ICR Conference, lowered its gross margin outlook for a second consecutive quarter. The group forecasted a gross margin decline of 90 to 110 basis points in the period versus a prior outlook of a 10 to 20 basis point increase, and shares in the company fell by $30.60 or 9.29 percent on Jan. 9.
As for the Q4 revenue outlook, strong demand and topline trends are expected to result in 25 to 27 percent growth for the period to a range of $2.660 billion to $2.7 billion versus prior guidance of $2.605 billion to $2.655 billion.
“We are pleased with our continued revenue growth, and momentum in the business as our teams navigate a dynamic macro-backdrop,” CEO Calvin Macdonald said in a prepared statement. “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.
