|
The
Vancouver-based firm will shutter the Sumner distribution center
as part of its business optimization effort and cut 128 jobs
beginning June 21, according to a WARN notice filed with the
state's Employment Security Department.
The move comes at a time when Lululemon is seeing slowing demand
for its premium athleisure in North America, where excessive
inventory levels at sporting retailers has resulted in lower
orders for sportswear and apparel firms.
"We regularly evaluate our distribution network to help shape
and support the future vision of our business," a company
spokesperson told Reuters.
The lease for Lululemon's 150,000-square-foot Sumner
distribution center will end in July 2025, a regulatory filing
showed.
A company spokesperson said some of the employees would be
retained and relocated to other facilities, including the
recently opened distribution center in greater Los Angeles area.
The retailer in 2021 had entered into a new lease for an about
1.26 million-square-foot distribution center in Ontario city in
California. The lease expires in 2039, its annual filing showed.
Lululemon, shares of which have dropped more than 31% so far
this year, also owns a distribution center in Groveport, Ohio,
while leases majority of its other facilities located across the
United States, Canada and Australia.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi
Majumdar)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
