Lululemon Athletica Inc. has confirmed that it will be restricting the operations of Ivivva, its active sportswear brand for girls. The company made this announcement in its report for the first quarter which ended April 30, 2017.
It specifically stated that the plan is to run the brand as primarily e-commerce focused business, with a select number of stores in key communities across North America. It plans to close approximately 40 of its 55 ivivva branded stores and to convert approximately half of the remaining stores to lululemon branded stores.
The Company will also close all of its ivivva branded showrooms and other temporary locations, and will streamline its corporate infrastructure. The company said revenue for the quarter rose 5.0% to USD520.31 million which was up from USD495.52 million last year.
It was also confirmed that the anticipated closures and restructuring will be substantially complete by the end of the third quarter of fiscal 2017. In connection with this restructuring plan, the Company recognized pre-tax costs totaling USD17.7 million in the first quarter of fiscal 2017.
Meanwhile, the Company reported diluted earnings per share of USD0.23 for the first quarter of fiscal 2017. Excluding the impact of the ivivva restructuring, the Company reported adjusted diluted earnings per share of USD0.32.
The Company stated that it ended the first quarter of fiscal 2017 with USD698.3 million in cash and cash equivalents compared to USD550.0 million at the end of the first quarter of fiscal 2016.
Laurent Potdevin, CEO, lululemon, commented: “I’m excited to see the positive trends that materialized late in Q1 continuing into Q2. Our current outlook for the remainder of 2017 is strong, and I’m energized by the growth strategies taking shape. I’m also confident in our plans to restructure ivivva and believe they are the best means to optimize this part of the business.”
Mr. Potdevin added: “From our cadence of product innovation, to our enhanced digital experience, and first-ever global brand campaign, we have never felt more deeply connected to our guest or better positioned to expand our collective. We remain laser focused on owning our position as the global brand defining an active, mindful lifestyle.”
Lululemon athletica, is a Canadian athletic apparel retailer. It is a self-described yoga-inspired athletic apparel company and a designer and retailer of technical athletic apparel, which produces a clothing line and runs international clothing stores from its company base in Vancouver, British Columbia, Canada. The company makes a number of different types of athletic wear, including performance shirts, shorts, and pants, as well as lifestyle apparel and yoga accessories. They sell their clothing internationally. Its key competitors include Athleta, Nike and Under Armour.