Skip to main content

Lululemon says that most of its 38 stores in China have been closed since Feb. 3.

Steven Senne/The Associated Press

Most of Lululemon Athletica Inc.’s nearly 40 stores in China have been closed since early February amid the novel coronavirus outbreak, the company said.

“We’re inspired by the resilience and commitment of our team in China as we navigate the emerging impacts of the coronavirus,” chief executive Calvin McDonald said in a statement Friday.

“The safety of our people is our highest priority, and we are adjusting store operations based upon the recommendations of local authorities.”

Story continues below advertisement

Most of the Vancouver-based company’s 38 stores in China have been closed since Feb. 3 in accordance with Chinese guidance. Some are now operating on a reduced schedule, while the company’s online business continues to operate.

Other Canadian retailers with stores in China have been under the same orders as authorities work to contain the COVID-19 outbreak.

Tim Hortons, which has roughly 30 stores in the country mostly in the Shanghai region, temporarily closed several of its restaurants, executives said earlier this month.

Amer Sports Canada Inc., which owns the Salomon, Arc’teryx and other brands, owns nearly 50 stores in China across its various brands, spokesperson Bethan Williams wrote in an e-mail earlier this month.

“Some of the stores are closed due to the closure of shopping malls, and most of them are having to shorten their business hours due to low traffic and instructions from the government,” Williams wrote, adding online sales haven’t seen much of an impact.

“Overall, it is too early to assess the operational and financial impacts of the virus.”

Lululemon said it is continuing to monitor the situation, and will provide and update on the financial and operational impact when it reports its fourth-quarter results in late March.

Story continues below advertisement

In January, the company raised its financial guidance for its fourth quarter, which ended Feb. 2, saying it expects more net revenue.

Earlier this month, Canada Goose Holdings Inc. cut its expectations for the year, citing “material negative impact” from the coronavirus.

The luxury parka maker lowered its expected annual revenue growth for its 2020 financial year with CEO Dani Reiss telling analysts during a conference call that the health crisis “has hit our biggest current growth market.”

Canada Goose saw significant reductions in revenue at stores and through online shopping across Greater China, while global travel disruptions affected its stores in North America and Europe.

Meanwhile, other retailers face manufacturing problems.

Indigo Books & Music Inc., which makes some of its products in China, has said that some of its new products will be delayed due to the outbreak.

Story continues below advertisement

For many companies, including Lululemon, China is a major market for expansion.

Restaurant Brands International, the parent company of Tim Hortons, announced in 2018 it plans to open more than 1,500 of the coffee-and-doughnut chain locations in the country over a 10-year period.

Lululemon announced last year plans to quadruple its international revenue within five years and projected revenue from China will exceed that in Europe, Australia and New Zealand by 2023.

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

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies