Lululemon Initiates 150 Layoffs After Lowering Annual Forecasts
The sports equipment company has initiated an internal adjustment process affecting 150 employees. The move comes after a strategic review of the company and in a context of uncertainty in the United States.
Lululemon announces the layoff of 150 employees as part of a restructuring of its organization. The decision follows a recent review of its operations and is intended to streamline the company's processes and drive new investments for long-term growth.
As we continue to implement our strategy, we periodically evaluate our business operations to ensure we are well positioned for the future," a spokesperson of the Canadian company said, according to WWD.
Lululemon cuts jobs, adjusts profit forecasts
The announcement of cuts comes weeks after Lululemon CEO Calvin McDonald warned of more cautious behavior on the part of the U.S. consumer, prompting a 22% drop in the value of its stock following the release of first quarter results. Since then, the stock has continued to fall.
Lululemon ended the first quarter with sales of $2.37 billion, down 7.34% from $2.208 billion in the same period of 2024. Gross profit, meanwhile, increased by 8.86% to 1.388 billion dollars, while net profit suffered, falling by 2.13% to 314 million dollars.
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