UPDATE: Lululemon stock slides premarket after yoga gear maker revises Q4 guidance

Lululemon Athletica Inc.
LULU,
+1.02%
revised its fourth-quarter guidance on Monday by raising its revenue guidance. tweaking its per-share earnings guidance to a tighter range and lowering margin guidance. The yoga wear company now expects revenue to range from $2.660 billion to $2.700 billion, up from prior guidance of $2.605 billion to $2.655 billion. It expects EPS of $4.22 to $4.27 compared with prior guidance of $4.20 to $4.30. The company expects gross margins to decline 90 basis points to 110 basis points, compared with prior guidance of a rise of 10 basis points to 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 company said in a statement released ahead of an investor conference. Lululemon stock slid 12% premarket, and is down 7% in the last 12 months through Friday’s close, while the S&P 500
SPX,
+2.28%
has fallen 17%. Under Armour stock
UA,
+3.70%
and Nike Inc.
NKE,
+3.24%
fell in sympathy, The former was down 2.6% premarket and Nike was down 1.5%.