lululemon Restructures ivivva, Closing Stores and Focusing on Ecommerce
lululemon athletica inc. plans to restructure its ivivva brand, operating ivivva, its activewear brand for girls, as a 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.
It is anticipated that the 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 $17.7 million in the first quarter of fiscal 2017.
"I'm excited to see the positive trends that materialized late in Q1 continuing into Q2," said Laurent Potdevin, CEO, lululemon. "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."
"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," Potdevin continued. "We remain laser focused on owning our position as the global brand defining an active, mindful lifestyle."