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Bloomberg
Lululemon Athletica Inc. shares tumbled after the company warned that financial results will come at the low end of previous guidance, saying the Omicron coronavirus variant was constraining its operations.
Sales for the fiscal fourth quarter are trending towards the bottom of its range of $2.125 billion to $2.165 billion, the maker of yoga pants said in a statement Monday. Lululemon also guided to the low end of its adjusted-profit forecast of $3.25 to $3.32 a share.
“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,†Chief Executive Officer Calvin McDonald said in the statement.
The trimmed outlook is the latest fallout from the fast-spreading Omicron variant. It has already upended airlines’ operations, with Alaska Air Group Inc. last week cutting 10% of its remaining January flight schedule.