The omicron variant is denting retail sales and leaving stores and distribution centers understaffed. Lululemon, Abercrombie & Fitch and American Eagle Outfitters present a cloudy holiday revenue forecast, citing supply chain challenges and labor constraints. So far investors seem to be shrugging off the bad news, seeing it as a short-term challenge. For many retailers, the silver lining appears to be the staying power of consumer demand.
Retail executives presenting at the virtual ICR Conference this week paint a picture of how the Covid omicron variant is denting sales and leaving stores and distribution centers understaffed.
But so far investors seem to be shrugging off the bad news, seeing it as a short-term challenge. For many retailers, the silver lining appears to be the staying power of consumer demand.
Lululemon said sales in the November-to-January quarter will come in on the low end of its previous expectations due to shorter hours at some locations tied to labor constraints.
