US retailers see omicron denting sales, investors see short-term hit

The latest surge in COVID-19 caseload in the United States, however, is expected to keep the retail industry on its toes in the near future, according to a global newswire.

Lululemon’s sales in the November-January quarter will be less than earlier expectations due to shorter hours at some locations because of labour constraints. Lands’ End had a difficult time hiring, while Abercrombie & Fitch cut its fiscal fourth-quarter revenue estimates due to lack of enough merchandise in stock.

Urban Outfitters said shopper visits to its stores didn’t pick up in December as anticipated. Its sales for the two-month period ended December 31 rose 14.6 per cent from 2019 levels. Digital sales climbed double digits, while in-store sales fell a low-double-digit percentage on a two-year basis, the company said.

American Eagle is projecting fourth-quarter sales to be up a mid-to-high teens percentage versus last year. It raised its expectations for 2023 revenue to $5.8 billion, from $5.5 billion, signaling a belief that the negative impact of the pandemic will only be temporary.

ALCHEMPro News Desk (DS)