- Lululemon said Monday that its fiscal fourth-quarter earnings and sales are likely to fall below previous estimates.
- CEO Calvin McDonald said the retailer started the holiday season on a strong note, but has since suffered the consequences of the latest surge in COVID cases in the US.
- He added that staff shortage and reduced store hours were affecting the results.
Shares of Lululemon fell in premarket trading on Monday after the retailer said earnings and revenue for its fiscal fourth quarter would hit the low end of forecasts due to staff shortages and shortened store hours as Covid cases rebound. increased in America.
The stock fell nearly 7% after closing Friday at $355.21, down 3.7%.
lululemon said a press release It expects fourth-quarter revenue at the low end of the range of $2.125 billion to $2.165 billion. It forecast adjusted earnings per share also in the range of $3.25 to $3.32 toward the low end.
Analysts were looking for adjusted earnings of $3.34 per share on sales of $2.17 billion, according to Refinitiv estimates.
Calvin McDonald, CEO of Lululemon, said, “We started the holiday season in a strong position, but have since experienced many of the consequences of the Omicron version, including a lack of capacity, more limited staff availability, and a few locations. including reducing operating hours.”
With the presence of the highly infectious Omron variant, many retailers are seeing labor problems worsen as employees become ill or are exposed to COVID-19.
Department store operator Macy’s has cut store hours at locations across the country for the rest of this month. While big-box retailer Walmart temporarily closed around 60 locations in December on coronavirus hot spots.
Read the full press release from Lululemon Here,