Lululemon Athletica, Inc. said it expects sales and earnings from the holiday quarter to come in near the low end of its previous forecasts amid renewed COVID-19 challenges.
The Vancouver-based chain announced that for the fourth quarter of fiscal 2021 it now expects the company’s net revenue to be toward the low end of its range of $2.125 billion to $2.165 billion and that it expects diluted earnings per share and adjusted diluted earnings per share to be toward the low end of its ranges of $3.24 to $3.31 and $3.25 to $3.32, respectively.
Calvin McDonald, Chief Executive Officer, commented: “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. 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. I am proud of how our teams continue to deliver for our guests, and we are excited about what the future holds for lululemon.”
The update comes as members of Lululemon’s management team will be meeting virtually with analysts and investors at the ICR Conference on January 10-12.
Photo courtesy Lululemon