Lululemon Athletica Inc. rose the most in a year and a half after new Chief Executive Officer Laurent Potdevin said he plans to speed up the yoga-wear retailer’s move into new markets around the world.
The shares climbed 6.1 percent to $41.18 at 11:36 a.m. in New York and earlier advanced as much as 9.8 percent for the biggest intraday gain since Sept. 7, 2012. Vancouver-based Lululemon slid 18 percent this year through yesterday.
“I intend to accelerate our global expansion,” Potdevin, who took over for Christine Day in January, said today on his first post-earnings conference call with analysts. “We see clear evidence of demand both in Asia and Europe with several countries ready for stores.”
Lululemon, which got 95 percent of its revenue from the U.S. and Canada in its most recent fiscal year, also can build partnerships to more quickly grow in regions that are too complex or too small for it to have a direct presence, he said.
The retailer will shift its international strategy away from a pattern of first opening showrooms — smaller locations with limited selections and shorter hours — before finding the right staff and locations for full, permanent stores. The company will now run those processes at the same time, Potdevin said on the call. Lululemon also hired a general manager for Asia. Continue reading >>