lululemon athletica inc. LULU disappointed investors ahead of the ICR Conference, sending warning signals for fourth-quarter fiscal 2021 on concerns regarding the impacts of the new Omicron variant. Management noted that LULU experienced severe impacts from the Omicron variant, which led to elevated capacity constraints, including staff shortages and reduced operating hours in some markets. Although lululemon started the holiday season on a strong note, it now lowered its guidance for the fiscal fourth quarter guidance to reflect the aforementioned impacts from the COVID-19 variant.

lululemon now predicts fourth-quarter fiscal 2021 revenues at the lower end of the previously guided range of $2.125-$2.165 billion. Reported earnings per share are also expected to come in at the lower end of the prior forecast of $3.24 to $3.31. Adjusted earnings per share are anticipated at the lower end of the $3.25-$3.32 guidance provided earlier.

The lackluster projections caused the lululemon stock to fall in the pre-market session, followed by a 1.9% decline in the trading hours on Jan 10. Shares of the Zacks Rank #3 (Hold) company have declined 9.4% in the past three months compared with the industry’s dip of 1.9%

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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lululemon was not the only company to have lowered view on concerns regarding the ongoing supply-chain headwinds and the rise of Omicron cases. Abercrombie & Fitch ANF slashed its view for the fourth quarter and fiscal 2021 due to impacts of the ongoing resurgence in COVID-19 cases, stemming from the Omicron variant.

Abercrombie now expects fourth-quarter fiscal 2021 sales to be flat to down on a two-year basis compared with its earlier view of a 3-5% rise. This can be attributed to unexpected and inventory delays as well as COVID-related impacts and restrictions. For fiscal 2021, ANF envisions net sales to increase 19-20% year over year and 2-3% on a two-year basis.

Big Lots Inc. BIG was another stock that witnessed a huge sell-off after issuing soft view for the fiscal fourth quarter, induced by supply-chain headwinds and the rapid spread of Omicron. Management noted that traffic and sales trends slowed down in January, which along with adverse weather conditions, resulted in lackluster sales for the fiscal fourth quarter.

Big Lots now expects two-year comparable sales (comps) growth of flat to low-single-digit percentage for fiscal January, which is below expectations. BIG now expects earnings per share of $1.80-$1.95 for the fourth quarter of fiscal 2021 compared with $2.05-$2.20 guided earlier.

Meanwhile, Crocs Inc. CROX raised its 2021 guidance to reflect strength in the Crocs brand despite the ongoing supply-chain challenges. CROX also reiterated the initially projected view for 2022. It now estimates 2021 revenue growth of 67% compared with growth of 62-65% expected earlier. For the fourth quarter of 2021, the company anticipates revenue growth of 42%.

For 2022, CROX continues to expect revenue growth of more than 20% for the Crocs brand, excluding HEYDUDE. Additionally, Crocs anticipates revenues of $700-$750 million from HEYDUDE in 2022. Driven by the anticipated strength for the Crocs brand, the company reiterated its view of generating $5 billion of revenues by 2026, before including the HEYDUDE revenues.

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