Lululemon shares slide 7% premarket after company guides to low end of ranges as omicron hurt staffing

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Lululemon Athletica Inc. shared LULU,
-3.68%
Down 7% in premarket trade on Monday, the maker of yoga gear said fourth-quarter sales and profit would fall at the low end of its guidance range, after the Omicron version of the coronavirus hurt staff levels in some places. The company is now expecting earnings per share to be in the low end of the $3.24 to $3.31 range, and adjusted earnings per share to be in the low end of the $3.25 to $3.32 range. It expects revenue to come in at the low end of its range of $2.125 billion to $2.165 billion. Chief Executive Calvin McDonald said in a statement, “We started the holiday season in a strong position, but have since experienced many of the consequences of the Omicron version, including a lack of capacity, more limited staff availability, and fewer locations. including reducing operating hours.” Shares are down 2.8% over the past 12 months, while the S&P 500 SPX,
-0.41%
has increased by 22%.

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