Health News

Lululemon restructures its ‘home fitness’ business and cuts 100 jobs

Lululemon restructures its business home fitnesss. The Canadian fashion and sports equipment company has laid off a hundred employees from its team as part of the reorganization of its Studio divisionas he has advanced footwearnews.

The company entered the business of home fitness in 2019 with the purchase of a stake in Mirror, a company specializing in smart mirrors. A year later, in the midst of the sports boom at home due to the pandemic, he took over 100% of Mirror for 500 million dollars.

However, the slowdown in this business after the end of the restrictions led the group to record an impairment of 443 million euros at the fitness equipment maker in the fourth quarter of 2022, and, earlier this year, Bloomberg reported that Lululemon was studying the sale of Mirror.

In parallel, last year the company launched Lululemon Studio, a platform that offers live classes and on demand. Initially, this offer was only available to Mirror subscribers, although Lululemon later untied them.

The objective of the company, according to statements collected by Footwearnews, is to “veer towards an offer focused on hardware [Mirror] to another centered on the offer of classes through apps.

The Canadian company ended the first quarter with a 24% increase in sales compared to the same period in 2022. Lululemon closed the first three months of the year with sales of 2,000 million Canadian dollars (1,379 million euros)compared to the 1,613 million dollars that the company billed in the first quarter of 2022.

For his part, The profit of the company has been located at 290 million Canadian dollars (200 million euros)compared to 190 million dollars that it obtained in 2022. Lululemon is immersed in the growth strategy Power of Threex2. The plan foresees doubling the turnover of 6,250 million Canadian dollars (4,312 million euros), to 12,500 million Canadian dollars (8,624 million euros) in 2026.

For this year, the company expects to register a growth in turnover of 17% and reach sales of between 9,440 million Canadian dollars (6,512 million euros) and 9,510 million Canadian dollars.

With the latest wave of cuts, Lululemon has become the latest fashion group to cut staff. In July, the Swedish fashion group, H&M, announced that it was cutting its workforce by up to 46 fewer positions.

Company workers denounced that they felt “unprotected by their own company.” For their part, the employees demand that the Swedish group manage the profitability problems without affecting the employment situation.

Source link

Related Articles

Back to top button