CEO of Lululemon, Laurent Potdevin, just recently announced that the brand will be closing 40 – 55 of its Ivivva stores by the end of its third quarter in October. Potdevin says that “restructuring is the best way of optimizing the struggling business.”
You may have seen our most recent post on Lulu’s online crash and mini scare, but this wasn’t the only problem Lululemon was facing. In fact, it seems to have been the least of their worries after looking at their sales over the last few quarters.
In March, Lululemon shared that the company was expecting softer sales in the upcoming months due to “sluggish traffic in stores” and a “lack of selection on its e-commerce site.”
Recently, however, it reported first-quarter revenue of $520 million US, an increase of five per cent compared to the first quarter of fiscal 2016. However, still a decrease from previous fiscal years.
Further, as stipulated by CBC News, net income was $31.2 million, down from $45.3 million a year earlier, with earnings per share of 23 cents, down 10 cents.
Oh Lululemon, we’re rooting for you!
Information gathered from CBC News. http://www.cbc.ca/news/business/lululemon-avivva-closures-1.4142238