Lululemon Expects Lackluster Q4 Performance
Lululemon Athletica expects to see dented holiday-quarter results as the retailer was forced to cut store hours and reduce staffing in response to the surge in the Omicron variant of COVID-19.
The company’s lackluster outlook comes despite enjoying a strong start to the 2021 holiday season. It now expects its net revenue for the fourth quarter to be toward the low end of its forecast of $2.13 billion to $2.17 billion. It also expects its adjusted profit per share to be lower than its previous estimates of $3.25 to $3.32.
Analysts had previously expected the company to see a profit of $3.34 per share on total revenue of $2.17 billion in Q4.
“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,” said Lululemon’s Chief Executive Officer Calvin McDonald.
The athleisure company is far from being the only player in this position. Bath & Body Works Inc. also noted last week that its post-Christmas sales were below what it had anticipated. Meanwhile, Macy’s is cutting its hours at its 516 store locations nationwide for the month of January. The company’s stores will now be open from 11 a.m. to 8 p.m. Monday through Thursday. Up until December, many of the company’s store locations used to open at 10 a.m. and close at 9 p.m.