Lululemon Says Some China Stores Reopen on Reduced Schedule

Lululemon Athletica has reopened some of its stores in China on a reduced schedule. They'd been closed since Feb. 3 because of the coronavirus outbreak.
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Lululemon Athletica (LULU) - Get Report said Friday that some of its 38 stores in China, the majority of which had been shuttered since Feb. 3 due to the deadly coronavirus, are again operating on a reduced schedule.

Shares of the Vancouver athletic-apparel company were off slightly to $262 in recent trading.  

"The safety of our people is our highest priority, and we are adjusting store operations based upon the recommendations of local authorities," Chief Executive Calvin McDonald said in a statement. 

"Despite the current disruption to our growing business in China, we remain confident in the long-term opportunities this market holds for Lululemon."

The company’s online business has continued to operate. Lululemon Athletica said that on its fourth-quarter earnings call next month, it would provide an update on the financial and operational impact.

Last month, the company raised its fourth-quarter guidance, estimating that earnings ranged $2.22 to $2.25 a share, up from its previous view of $2.10 to $2.13.

Revenue should come in at $1.37 billion to $1.38 billion in the quarter, Lululemon said, up from its previous view of $1.32 billion to $1.33 billion. 

Analysts surveyed by FactSet are expecting the company to report earnings of $2.15 a share on revenue of $1.35 billion for the quarter.

In December, McDonald said that he saw significant opportunities to further expand in China, after doubling its store base in the year.

The coronavirus originated in China and the country's National Health Commission reported a total of 75,465 confirmed cases of the virus and 2,236 deaths. South Korea reported 100 new cases of the disease and a total of 204.