Lululemon Athletica is planning to close most of the company’s ivivva stores, a store concept it first unveiled in 2009 to sell athletic apparel to younger girls.
On Thursday, the yoga- and running-gear maker disclosed that it would close about 40 of the company’s 55 ivivva-branded stores and convert half of the remaining stores to Lululemon-branded shops. It will also close all of the ivivva showrooms and other temporary locations as part of a restructuring that will cost about $50 million to $60 million in pre-tax costs throughout fiscal 2017. Lululemon promised it would continue to sell ivivva activewear online, as well as in the eight remaining physical stores.
“The store closures and restructuring will be substantially complete by the end of the third quarter,” said Chief Financial Officer Stuart Haselden in a presentation to analysts.
Ivivva athletica was a new brand that Lululemon first unveiled in the fall of 2009 under former CEO Christine Day, who tested the concept in the company’s home market of Canada before expanding to dozens of shops across North America. Ivivva—which sells $44 tank tops and $78 hoodies to girls between the ages of 6 and 12—was initially created to sell garments meant to function in a variety of sports…