Lululemon Athletica Inc. says it is shutting down about 40 of its 55 Ivivva stores.
The Vancouver-based retailer says the closures of the stores, which sell girls' yoga and athletic wear, will be mostly complete by the end of its third quarter that concludes in October.
CEO Laurent Potdevin says the restructuring is the best way of optimizing the business, which has been struggling.
In March, Lululemon warned that it would experience softer sales due to sluggish traffic in stores and a lack of selection on its e-commerce site, predicting earnings per share of 25 to 27 cents on revenue of US$510 million to US$515 million.
On Thursday, it reported first-quarter revenue of US$520 million, an increase of five per cent compared to the first quarter of fiscal 2016.
Net income was $31.2 million, down from $45.3 million a year earlier, with earnings per share of 23 cents, down 10 cents.
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