lululemon expects the second half of fiscal 2024 to be almost in line with the second quarter of fiscal 2024, excluding the impacts of the 53rd week and a shorter holiday shopping period in the fourth quarter. While the company is optimistic about its fiscal 2024 performance, it remains cautious due to the uncertainties in the macro environment. Hence, it lowered its revenue and EPS forecast for fiscal 2024. For the third quarter of fiscal 2024, management anticipates net revenues of $2.34-$2.365 billion, indicating 6-7% year-over-year growth. The company expects the gross margin to contract 50-60 bps year over year, driven by deleverage on fixed costs and ongoing investment in the multi-year distribution center project. LULU expects the product margin to be relatively flat year over year in the fiscal third quarter, including a 60-bps increase in freight costs and flat markdowns.