Lululemon Athletica said on Monday that the Omicron coronavirus type will have a negative impact on holiday-quarter performance, as the yoga-wear company reduced staffing and store hours during the peak shopping season, sending its stock down 7%.
Due to an overworked supply chain, Omicron has further harmed the retail sector, which has been dealing with shipment delays and product shortages.
Bath & Body Works reported last week that its post-Christmas sales fell short of forecasts, while Macy's cut shop hours in the United States for the rest of the month.
Several Omicron-related deficiencies, including higher capacity limits and reduced store hours in some locations, have affected Lululemon, which had a solid start to the holiday season, according to Chief Executive Calvin McDonald.
The Vancouver, Canada-based firm now expects fourth-quarter net revenue to fall between $2.13 billion and $2.17 billion, compared to its previous prediction of $2.13 billion to $2.17 billion.
It also expects adjusted profit per share in the fourth quarter to be near the low end of its previous range of $3.25 to $3.32.
Lululemon was expected to earn $3.34 per share on revenue of $2.17 billion in the Christmas quarter, according to analysts.