Pedestrians wearing protective masks walk past a Lululemon store in San Francisco, Calif. On Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty Images
Lululemon shares fell in pre-market trading on Monday after the retailer said earnings and revenue for its fiscal fourth quarter would likely be in the lower end of estimates due to staff shortages and hours of work. Shortened store openings as Covid cases rise again in US
The stock fell about 7% after closing Friday down 3.7% at $ 355.21.
Lululemon said in a press release that he expects fourth quarter revenue in the low end of its $ 2.125 billion to $ 2.165 billion range. It also expects adjusted earnings per share down its range of $ 3.25 to $ 3.32.
Analysts were looking for adjusted earnings of $ 3.34 per share on sales of $ 2.17 billion, according to Refinitiv estimates.
“We started the holiday season in a strong position, but have since suffered several consequences from the omicron variant, including increased capacity constraints, more limited staff availability and reduced opening hours in some locations,” said Calvin McDonald, CEO of Lululemon.
Many retailers are seeing workforce issues worsen as staff become ill or are exposed to Covid-19, with the presence of the highly contagious variant of omicron.
Department store operator Macy’s has reduced store hours across the country for the remainder of the month. While big box retailer Walmart temporarily closed nearly 60 locations in December in coronavirus hotspots.
Read Lululemon’s full press release here.