LULU Lululemon Athl
54.74 -1.26 (-2.20 %)
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Lululemon gained as much as 15% in trading on Friday after the company reported better earnings and revenues than expected, and plans to restructure its kids’ clothing line.
Ivivva, the activewear brand for girls, will become a primarily online-only business as 40 of the 55 stores close, Lululemon said in its earnings statement on Thursday.
Half of the remaining locations will be converted to Lululemon stores. All Ivivva-branded showrooms will be shut down.
Lululemon expects the restructuring to be mostly completed by the third quarter of fiscal 2017, and anticipates $50 to $60 million in pre-tax costs during the fiscal year related to this.