LululemonShares fell on Monday in premarket trading after Covid Cases surged in the U.S., and the retailer stated that its earnings and revenue for the fiscal fourth quarter would likely be below estimates.

Stock fell around 7% on Friday after close at 355.21.

Lululemon stated in a press releaseFourth-quarter revenues are expected to fall at the bottom end of its range, between $2.125 and $2.165 trillion. Adjusted earnings per share will be predicted to also fall at the low end in its range from $3.25 – $3.32.

According to Refinitiv estimates, analysts had expected adjusted earnings of $3.34 per Share on sales of $2.17 Billion.

Calvin McDonald, Chief Executive Officer at Lululemon, stated that while we started the holiday season in a good position, the company has since suffered several effects from the omicron variant. These include increased capacity constraints and fewer staff availability.

Numerous retailers have noticed a rise in labor troubles as their staff are sickened or exposed to Covid-19. This variant is highly contagious.

Retailer of department stores Macy’s has cut store hours at locations across the country for the rest of this month. Although big-box retailers still have a presence in the country, Walmart temporarily closed almost 60 locations in December at coronavirus hot spots.

Lululemon’s complete press release can be viewed here here.