The company’s shares, which have risen more than 50% this year, were down about 5% in extended trading.

Lululemon said it would ramp up marketing spending on Mirror, the at-home fitness company it bought for $500 million earlier this year, to capitalize on booming demand for home workout classes spurred by the coronavirus and the opportunity to drive business during the holiday season.

The investment in Mirror, which is expected to generate $150 million in 2020 revenue, comes at a time the yogawear maker was forced to halt its in-store yoga and fitness classes, a key marketing strategy that had brought in more shoppers to stores.

Lululemon said it was preparing for a number of scenarios and pulled forward its investments in the digital channel as the busy holiday season approaches.

“Our starting point is that the environment remains uncertain. COVID is not yet contained in many of the markets where we operate,” Chief Executive Officer Calvin McDonald told analysts.

Click here to view original web page at www.reuters.com


Leave a Reply

Your email address will not be published.