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(Lead image via Biz Journals/RACHEL & NOAH RAY PHOTOGRAPHY)
Lululemon has laid off about 100 employees as the company restructures its Studio platform, per Footwear News. A spokesperson for Lululemon confirmed that the lay-offs are a result of Lululemon’s decision to “fully integrate” the recently launched Studio fitness platform, which was initially paired with the Lululemon Studio Mirror, and that majority of the impacted employees were offered other roles in the company.
This shift, as well as our evolved strategy from a hardware-centric offering to one that is also focused on digital app-based services, enables Lululemon to better drive long-term value through our Membership offerings and create deeper connections with our community of guests.
-Lululemon spokesperson, per Footwear News
In 2020, Lululemon acquired Mirror, a fitness startup that sells an in-home wall-mounted device that doubles as a mirror, which allows users to stream workout classes. The acquisition costs Lululemon $500 million, but the investment seemed promising as at-home workouts were on the rise at the time due to the COVID-19 pandemic.
Since then, Lululemon launched its Lululemon Studio platform, which debuted last year and offers more than 10,000 on-demand and live-streamed classes that have been available with a Mirror subscription.
At first, the Lululemon Studio Membership required purchase of the Lululemon Studio Mirror, but the company later added a more affordable option that did not require the machine.
In June, Lululemon celebrated a strong performance in the first quarter, defying the prevailing trend of retail weakness and earnings disappointments. Despite challenging conditions, the athleisure brand known for its high price sportswear, successfully maintained its full-price retail strategy while others relied on extensive promotional activities.
As Lululemon looks to the year ahead, the company raised its anticipating earnings per share in the range of $11.74 to $11.94. Furthermore, Lululemon expects revenues to reach an estimated range of $9.44 billion to $9.51 billion.
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