The Vancouver-based company now expects revenue to come in at the low end of its range
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Lululemon Athletica Inc. shares plunged more than 7.5 per cent at market open Monday after the company said it expects a hit to earnings in the fourth quarter due to Omicron.
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The Vancouver-based company now expects its net revenue to come in at the low end of its range of $2.125 billion to $2.165 billion. Diluted earnings per share and adjusted diluted earnings per share are also expected to hit the low end of its range of $3.24 to $3.31 and $3.25 to $3.32, respectively, the company said in a press release.
“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 a statement.
The stock closed the week at US$355.21 and opened at US$328.10 on the NASDAQ as investors reacted to the news. It was down 5.5 per cent at US$335.64 at 10:30 a.m. ET.
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