Coronavirus has Lululemon relying on China for now
The plan is to keep U.S. and European stores closed through April 5
Lululemon Athletica is relying on China as the company keeps its U.S. and Europe stores closed due to the coronavirus.
The company has reopened all but one store in China, after closing them in February.
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Lululemon Chief Executive Calvin McDonald says business there is getting better week by week, but isn't back to where it was before the shutdown.
The retailer is also relying on e-commerce.
"Although we do not know exactly when the current situation will pass, what we do know is that our stores will reopen," said McDonald. "We know that initially the business will be lower than it was pre-COVID-19, but we believe that each day and each week, it will keep building."
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Lululemon reported that it had strong sales last quarter, but the slowdown began in the second week of March when it had to start shutting stores.
The plan is to keep U.S. and European stores closed through April 5.
Net revenue increased 20 percent to $1.4 billion for the three months with sales at stores open at least a year grew 9 percent.
|LULU||LULULEMON ATHLETICA INC.||294.74||-2.66||-0.89%|
Net income increased to $298 million from $218 million a year ago.
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Lululemon’s shares closed the day up 3.7 percent, but fell 2 percent in after-hours trading.