Lululemon Retail Interest Holds As Company Plans To Lay Off 150 Support Staff

Lululemon (LULU) is cutting 150 roles at the firm's store support centers, according to Bloomberg, which received a confirmation from the company.

The reduction is part of an effort "to operate with more agility and further invest in our growth," the Lululemon statement said.

The company eliminated 128 positions last year following the closure of its Washington distribution center, and the year prior, cut approximately 1,500 jobs — about 10% of its workforce — as part of a broad corporate restructuring.

Lululemon shares dropped 1% on Wednesday. They are down over 40% year-to-date.

On Stocktwits, the retail sentiment for the company remained 'bullish,' unchanged from a week ago.

A user expressed frustration at the recent drop in shares, but said, "any drop from now on is a blessing for buying shares."

https://stocktwits.com/JoeS11/message/618419099 

Earlier this month, Morgan Stanley downgraded its rating to 'Equal Weight' from 'Overweight' and cut the price target, after the athleticwear company gave a soft second-quarter forecast and cut its annual profit outlook.

Lululemon shares plummeted 20%, the most in five years, on June 6, after the quarterly results showed persisting weakness in the United States market. In recent months, Abercrombie & Fitch (ANF), too, has lowered its annual profit forecast, while American Eagle (AEO) withdrew its outlook.

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