By Sam Boughedda
Investing.com — Lululemon Athletica Inc (NASDAQ:LULU) shares fell 5% after it told investors Monday morning that the Omicron variant has affected the business, and it now expects earnings and revenue to be at the lower end of their respective ranges.
The athletic apparel company said it "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."
As a result, it now expects revenue to be toward the low end of its range of $2.125 billion to $2.165 billion for the fourth quarter. It also forecasts earnings per share for the period toward the low end of its $3.25 to $3.32 range.
“We are closing out a strong 2021 in the coming weeks, and we’re pleased with how lululemon has delivered over the course of the year," said the company's CEO Calvin McDonald.