Lululemon Shares and Sales Down Due to COVID

The retailer is expecting an underwhelming quarter.

The retailer is expecting an underwhelming quarter.

Athletic apparel retailer Lululemon stated in a press release today that the current circumstances of the world have severely hampered their fourth quarter profits. Due primarily to surges in COVID-19 cases brought about by the Omicron variant over the holidays, which in turn led to staffing shortages and store closures, the retailer’s revenue for the quarter will likely only just barely make the bottom of their projected range of $2.125 billion to $2.165 billion. This announcement also caused Lululemon’s stock values to drop by 4%.

“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 fluctuating impact of the COVID-19 pandemic has hit multiple major retailers in similar capacities. While business has not been halted entirely, many have had to upend their business models and work around the constant starting and stopping of case surges in order to balance profit with employee safety. Big-box stores like Macey’s and Walmart were forced to close large swaths of physical locations during the holiday shopping season when they became hotbeds for new COVID infections, while other stores have had to cut down their operating hours due to a lack of required staff, either due to resignations or sick call-outs.

Follow @TwistityNews