Lululemon Athletica Inc. (NASDAQ: LULU) shares made a brief gain to kick off the week after the company announced an update to its fourth-quarter guidance.

For the fiscal fourth quarter, management now anticipates that net revenue will be in the range of $905 million to $915 million, based on a total comparable sales increase in the high single digits on a constant dollar basis. This compares to the previous guidance of net revenue in the range of $870 million to $885 million.

Separately, earnings per share (EPS) are now expected to be between $1.25 and $1.27 for the quarter. The previous diluted earnings per share guidance range was $1.19 to $1.22.

The consensus estimates from Thomson Reuters call for $1.22 in EPS and $883.78 million in revenue for the fiscal fourth quarter.

Lululemon made it a point of saying that this guidance also continues to assume a 30.4% tax rate and does not reflect the impact of the U.S. tax reform that was enacted in December 2017. While the company is assessing the impact that the tax reform will have, it expects to recognize a significant income tax expense in the fourth quarter of fiscal 2017 related to the one-time deemed repatriation tax on accumulated foreign earnings. Management ultimately believes that the impact of the tax reform will be favorable to the Lululemon’s effective tax rate in fiscal 2018.

Laurent Potdevin, CEO of Lululemon, commented:

We are thrilled with our performance this holiday season that reflects an accelerating trend across all parts of our business, and we look forward to continued momentum in 2018 and beyond.

Shares of Lululemon traded up about 3% at $81.70 in Monday’s premarket, but they were last seen at $79.55. The consensus analyst price target is $77.93 and the 52-week range is $47.26 to $81.92.

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