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Lululemon said it would close nearly all of its 55 Ivivva stores, but continue to sell the brand online. Altogether, Lululemon had 411 outlets at the end of the first quarter. The shift is part of a broader strategy to boost online sales at Lululemon, which like most traditional retailers is looking to the internet to offset business declines at its physical stores. "We've doubled down on our digital strategy," Potdevin said on an analyst call, adding that he believed online sales had the potential to reach more than a billion dollars. The company forecast full-year net revenue of $2.53 billion to $2.58 billion, below its previous guidance of $2.55 billion to $2.6 billion. The leaner Ivivva will bring in annual revenue of "a little less than half" of what it posted last year, Chief Financial Officer Stuart Haselden said on the call. He said he expected the restructured business to post a "modest" operating profit. Excluding the impact of restructuring, Lululemon forecast full-year diluted earnings per share of $2.28 to $2.38. That range is 2 cents above the company's previous forecast. The Vancouver-based company popularized the "athleisure" market, but sales have faltered in recent years as the company faced operational issues and rivals introduced less-expensive gymwear. Lululemon's U.S.-traded shares have fallen about 25 percent so far this year, underperforming the 1 percent gain in the Nasdaq Composite Index.

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