Lululemon plans to cut roughly 150 employees as part of organizational structure changes, according to a report in The Canadian Press. The affected jobs are part of its store support centers.
The job cuts come as Lululemon on June 6 reported first-quarter earnings that topped guidance but trimmed its earnings guidance for the year as proposed tariffs threaten the company’s supply chain.
On an analyst call, Lululemon officials noted that the company expected to offset the tariff costs through several mitigation efforts, including “modest” price increases on select items, supply chain efficiency actions and targeted sourcing shifts; however, the company expects the mitigation benefits mainly in the second half of the year, and LULU provided second-quarter guidance that was below analyst targets.
Lululemon officials remained bullish during the analyst call, discussing Lululemon’s position in the marketplace and its ability to overcome any disruptions caused by tariffs. Calvin McDonald, Lululemon’s CEO, said, “I feel we are well-positioned to navigate the current period. We intend to leverage our strong financial position and competitive advantages to play offense while making deliberate decisions and continuing to invest in our growth opportunities.”
Image courtesy Lululemon
