Pedestrians wearing protective masks walk past a Lululemon store in San Francisco, California, on Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty pictures
Lululemon shares fell in pre-market trading on Monday after the retailer said earnings and revenue for the fourth quarter of the fiscal year are likely to come at the low end of estimates due to staff shortages and reduced opening hours as Covid cases rise again in the US
The stock fell around 7% after closing on Friday down 3.7% to 355.21[ads1] dollars.
Lululemon said in a press release that they expect fourth-quarter revenue at the low end of the range of $ 2.125 billion to $ 2.165 billion. It also forecasts adjusted earnings per share towards the low end of the $ 3.25 to $ 3.32 range.
Analysts were looking for adjusted earnings of $ 3.34 per share on the sale of $ 2.17 billion, according to Refinitiv estimates.
“We started the holiday season in a strong position, but have since experienced several consequences of the omicron variant, including increased capacity constraints, more limited staff availability and reduced operating hours in some places,” said Lululemon CEO Calvin McDonald.
Many retailers see work problems worsen as employees become ill or exposed to Covid-19, with the presence of the highly contagious omicron variant.
The department store operator Macy’s has cut opening hours in places across the country for the rest of this month. While big box retailer Walmart temporarily closed nearly 60 locations in December at coronavirus hot spots.
Read the full press release from Lululemon here.