Lululemon warned that the omicron variant will hurt its fourth-quarter sales and earnings.
Lululemon Athletica Inc. warned that omicron will take a toll on its fourth-quarter results even in the face of strong holiday results.
The lifestyle athletic apparel company said it will close out a “strong” 2021 fourth quarter in the coming weeks, but advised that its earnings and revenue will likely come in at the low end of estimates amid staffing shortages and shortened store hours due to Omicron.
“We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations,” he said,” said CEO Calvin McDonald.
Lululemon said it now expects its net revenue to be toward the low end of its range of $2.125 billion to $2.165 billion. It expects diluted earnings per share and adjusted diluted earnings per share to be toward the low end of its ranges of $3.24 to $3.31 and $3.25 to $3.32, respectively. Analysts had been looking for earnings of $3.34 per share on sales of $2.17 billion.
The fast-spreading omicron variant has taken a toll on the nation’s employers, including retailers, as many employees call in sick, leading to more staff shortages. Last week, it was reported that Macy’s had shortened its hours at its stores nationwide. Other retailers have reportedly done the same