Lululemon Athletica Inc beat analysts' estimates for quarterly results on Thursday, lifted by strong holiday season demand, but the athletic apparel maker did not provide a full-year forecast as the coronavirus outbreak fuels uncertainty.
27 Mar 2020 07:05AM
Share this content
REUTERS: Lululemon Athletica Inc beat analysts' estimates for quarterly results on Thursday, lifted by strong holiday season demand, but the athletic apparel maker did not provide a full-year forecast as the coronavirus outbreak fuels uncertainty.
Shares of the Vancouver-based company fell about 3per cent after the closing bell.
The company is seeing stay-at-home consumers buying more yoga mats and blocks, Chief Executive Officer Calvin McDonald told analysts on a post-earnings call, but online growth has not been enough to counter volumes lost from the store closures.
In China, where Lululemon operated nearly 40 stores, the company has already reopened most stores except one in Wuhan, the epicenter of the outbreak, which is expected to open next week.
The company said it is planning for stores in North America to be closed for longer than they were in China.
Lululemon, which has been streaming its popular yoga classes on social media following the store closures, said it would consider redeploying some of those marketing dollars to drive its online business.
"We know that initially, the business will be lower than it was pre-COVID-19 but we believe that each day and each week, it will keep building," McDonald said.
Gabriella Santaniello, founder of retail consulting firm A Line Partners, said Lululemon's efforts to stream yoga classes online and their ability to build a sense of community among customers would be an advantage as it looks to weather the hit from the health crisis.
"Lululemon started as a yoga company and you can actually do yoga inside!"
Like all retailers, the Canadian company has shut its stores across the world and focused on selliRead More – Source