Lululemon Athletica Inc on Thursday warned of more store closures and risks to demand from a potential resurgence in COVID-19, even as it forecast first-quarter revenue above analysts' estimates.
The company said any surge in the coronavirus cases, including the new variants, could hamper demand and disrupt supply chain even before it fully recovers from last year's store closures, sending its shares down 1% in extended trading.
The global health crisis led to a jump in sales for leggings and sports bras over the last year as consumers looking for comfortable home-exercise apparel flocked to athletic wear makers including Lululemon, and the company signaled some continuation of these trends.
It forecast first-quarter revenue of $1.10 billion to $1.13 billion, above analysts' estimate of $999.5 million, according to IBES data from Refinitiv.
The Canadian company expects first-quarter adjusted earnings per share of 86 cents to 90 cents, above analysts' estimates of 82 cents.
Lululemon's full-year earnings per share expectations of $6.30 to $6.45, however, were below estimates of $6.72.
Net revenue rose 24% to $1.73 billion in the fourth quarter, beating analysts' estimates of $1.66 billion.
On an adjusted basis, Lululemon earned $2.58 per share, compared with analysts' estimates of $2.49 per share. REUTERS