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Lululemon to cut back Ivivva business

Published 06/02/2017, 07:31 AM
© Reuters.  Lululemon to cut back Ivivva business
LULU
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  • Lululemon (NASDAQ:LULU) plans to close 40 of its 55 Ivivva stores and convert half of the remaining stores to normal Lululemon locations.
  • "The store closures and restructuring will be substantially complete by the end of the third quarter," noted CFO Stuart Haselden on the company's earnings conference call.
  • "We plan to reposition ivivva as a primarily eCommerce-focused business with a select number of stores continuing to operate in key communities across North America," he added.
  • During Q1, Lululemon's gross margin rate was adversely impacted by the Ivivva business by 100 basis points.
  • Lululemon earnings call transcript
  • Previously: Lululemon Athletica beats by $0.04, beats on revenue (June 1)
  • Previously: Lululemon rallies after outlook improves (June 1)
  • LULU +14.94% premarket to $55.94.
  • Now read: Wall Street Breakfast: Jobs Day Comes Round Again


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