Lululemon Athletica Inc. said on Monday it expects the Omicron coronavirus variant to have dented holiday-quarter results as the yoga-wear maker cut down on staffing and store hours during the key shopping period, sending its shares down 7 per cent.
Omicron has further hurt the retail sector that has been grappling with shipping delays and product shortages due to an overburdened supply chain.
Personal products maker Bath & Body Works Inc. said last week its post-Christmas sales were below expectations, while department store chain Macy’s Inc. reduced U.S. store hours for the rest of month.
Lululemon, which had a strong start to the holiday season, has been hurt by several Omicron-driven shortfalls, including increased capacity constraints and reduced store hours in some locations, chief executive Calvin McDonald said. The Vancouver-based company said it now expects fourth-quarter net revenue to be toward the low end of its previous forecast of US$2.13-billion to US$2.17-billion.
It also expects fourth-quarter adjusted profit per share to be toward the low end of its earlier outlook of US$3.25 to US$3.32.
Analysts on average had estimated Lululemon to post a profit of US$3.34 a share on revenue of US$2.17-billion in the holiday quarter.
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