Shares of Lululemon Athletica Inc. (LULU) are slipping over 6% on Monday morning after the company lowered its financial guidance for the fourth quarter, as the omicron variant has impacted its staffing and operations.
LULU is currently trading at $333.51, down $21.70 or 6.11%, on the Nasdaq.
The athletic apparel company now expects earnings, adjusted earnings and net revenue for the fourth quarter toward the low end of its guidance range.
Previously, the company had expected earnings of $3.24 to $3.31 per share and adjusted earnings of $3.25 to $3.32 per share on net revenue between $2.125 billion and $2.165 billion. Analysts polled by Thomson Reuters currently expect earnings of $3.34 per share on revenues of $2.17 billion for the quarter.
The company is due to report its fourth-quarter earnings on March 30.
CEO Calvin McDonald said, "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."
For comments and feedback contact: editorial@rttnews.com
Business News