Will Supply Chain Challenges Hurt Lululemon's Fourth-Quarter Results?
Anyone who follows the financial news has certainly heard about how congested supply chains have been over the past year. Surging consumer demand following the depths of the coronavirus pandemic, spurred by record government stimulus, took companies by surprise, and their capacity to produce and ship goods in large quantities was not ready.
Top apparel stock Lululemon (NASDAQ: LULU), which truly has a global supply chain that sends high-quality merchandise from Southeast Asia primarily to North America, is dealing with these issues. In fact, on the third-quarter 2021 earnings call, CEO Calvin McDonald mentioned that the company's demand is seriously outstripping supply and that its performance last quarter would've been stronger without the supply chain challenges.
Lululemon reports fiscal 2021 fourth quarter financials on March 29, and investors need to keep a close eye on how the business is navigating the current economic environment.
Source Fool.com
