** Shares of sportswear maker Lululemon Athletica up 5.8% at $401.25 premarket

** Company raises Q4 sales and profit targets on strong demand for its apparel during the holiday shopping season

** LULU now expects Q4 net revenue in the range of $3.56 billion to $3.58 billion, compared to prior forecast of $3.48 billion to $3.51 billion

** Sees quarterly profit per share between $5.81 and $5.85, up from previous forecast of $5.56 to $5.64

** LULU says it now expects gross margin to increase approximately 30 basis points relative to the fourth quarter of fiscal 2023 and compared to its previous guidance of a decrease of 20 to 30 basis points

** Stock fell 25.2% in 2024

(Reporting by Ananya Mariam Rajesh in Bengaluru)

((AnanyaMariam.Rajesh@thomsonreuters.com ; X: ))