Lululemon narrows Q4 adjusted EPS view to $4.22-$4.27 from $4.20-$4.30

Q4 consensus $4.30. Raises Q4 revenue view to $2.66B-$2.7B from $2.605B-$2.655B,consensus $2.67B. The company also said it now expects gross margin for the fourth quarter of fiscal 2022 to decline 90-110 basis points compared to its previous expectation for an increase of 10-20 basis points. However, the company now expects that it will further leverage selling, general and administrative expenses 100-120 basis points compared to its previous expectation of 30-50 basis points of leverage. The revised guidance for the fourth quarter continues to assume an effective tax rate of approximately 28.5%. Calvin McDonald, CEO, 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. 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."