Shares of Lululemon Athletica (NASDAQ: LULU) dropped 9.3% on Monday after the athletic-wear specialist released a revision to its previously issued guidance for its fourth quarter of fiscal 2022, which ends Jan. 29. (The fiscal fourth quarter is not the same as the calendar quarter. So the company's release should be considered an update to guidance, rather than a preliminary result, because the quarter is not over.) 

Lululemon revised its outlook for revenue, adjusted earnings per share (EPS), and gross margin. It's safe to assume that the stock sell-off was driven by the gross-margin revision, as the expectation for this metric was lowered. The adjusted EPS expectation (at the midpoint) was essentially unchanged, while revenue guidance was raised.

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Source Fool.com