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Lululemon Athletic (NASDAQ:LULU) revealed that the company will close its distribution center in Washington state at the end of the year. The measure will also lead to the layoffs of more than 100 employees.
The sportswear giant will close the Sumner distribution center as part of its business optimization effort and eliminate 128 jobs effective June 21, according to a WARN notice filed with the state Department of Employment Security. A lululemon (lulu) spokesperson said the company periodically evaluates its distribution network to help shape and support the future vision of the business. Some of the employees will be retained and relocated to other facilities, including the company's recently opened distribution center in the greater Los Angeles region.
With its latest earnings report, Lululemon (LULU) predicted first-quarter revenue to be in the range of $2.18 billion to $2.20 billion. First-quarter earnings per share are expected to fall between $2.35 and $2.40. Current consensus estimates are for revenue of $2.2 billion and earnings per share (EPS) of $2.41. Lululemon (LULU) set full-year revenue guidance of $10.7 billion to $10.8 billion and full-year EPS guidance of $14.00 to $15.20.
Track Lululemon Athletica (LULU) Stock 0.44% higher in premarket trading Monday at $354.01 versus the 52-week range of $326.93 to $516.39. Wall Street analysts and Looking Alpha analysts have a consensus Buy rating on LULU.
