Athletic apparel maker Lululemon Athletica (LULU) is closing a distribution centre in Washington state and eliminating about 100 jobs as it grapples with a sales slump in America.
The company said it decided to close the small distribution centre as part of a re-evaluation of its network.
Lululemon added that some of the impacted employees could be moved to jobs at a new distribution centre that was recently opened in Los Angeles.
The distribution centre closure and layoffs in Washington state come after Vancouver-based Lululemon reported disappointing fourth quarter 2023 financial results and issued weak guidance.
The company reported that its Q4 sales rose 9% in North America compared to 29% growth a year earlier. While Lululemon is still growing in the U.S. and Canada, its sales have slowed.
In terms of guidance, Lululemon said that, for all of this year, it expects sales of $10.70 billion U.S. to $10.80 billion U.S., compared with estimates of $10.90 billion U.S.
Full-year earnings are forecast at $14 U.S. to $14.20 U.S. a share compared to estimates of $14.13 U.S. per share.
The stock of Lululemon has declined 30% so far in 2024 and currently trades at $352.47 U.S. per share.
