(Reuters) -Lululemon Athletica will close its distribution center in Washington state at the end of this year and lay off more than 100 employees, the apparel retailer told Reuters on Friday.
The Vancouver-based company will close the Sumner distribution center as part of its business optimization efforts and eliminate 128 jobs starting June 21, according to a WARN notice filed with the state’s Employment Security Department.
The move comes as Lululemon (NASDAQ:) sees declining demand for its premium athleisure in North America, where excessive inventory levels at sports retailers have resulted in lower orders for sportswear and apparel companies.
“We regularly evaluate our distribution network to shape and support the future vision of our company,” a company spokesperson told Reuters.
The lease for Lululemon’s 150,000-square-foot Sumner distribution center expires in July 2025, according to a regulatory filing.
A company spokesperson said some of the employees would be retained and moved to other facilities, including the recently opened distribution center in the Los Angeles area.
The retailer had entered into a new lease in 2021 for an approximately 1.26 million square foot distribution center in the city of Ontario, California. The lease expires in 2039, the annual filing showed.
Lululemon, whose shares are down more than 31% so far this year, also owns a distribution center in Groveport, Ohio, while leasing most of its other facilities in the United States, Canada and Australia.
