<p>Yogawear maker Lululemon Athletica Inc said on Tuesday it was "cautiously optimistic" about the holiday season and forecast current-quarter adjusted profit to fall as much as 20 per cent due to higher marketing expenses.</p>.<p>The company's shares, which have risen more than 50 per cent this year, were down about <span> </span>5 per cent in extended trading.</p>.<p>Lululemon said it would ramp up marketing spending on Mirror, the at-home fitness company it bought for $500 million earlier this year, to capitalize on booming demand for home workout classes spurred by the coronavirus and the opportunity to drive business during the holiday season.</p>.<p>The investment in Mirror, which is expected to generate $150 million in 2020 revenue, comes at a time the yogawear maker was forced to halt its in-store yoga and fitness classes, a key marketing strategy that had brought in more shoppers to stores.</p>.<p>Lululemon said it was preparing for a number of scenarios and pulled forward its investments in the digital channel as the busy holiday season approaches.</p>.<p>"Our starting point is that the environment remains uncertain. Covid is not yet contained in many of the markets where we operate," Chief Executive Officer Calvin McDonald told analysts.</p>.<p>Lululemon's relatively small stores, which constrain the number of shoppers it can allow inside, and reduced operating hours would impact store traffic in the second half of 2020, the company said.<span> </span></p>.<p>But to counter that, Lululemon said it would open 70 seasonal stores in key centers for the all-important holiday season to bring in more shoppers to its brick-and-mortar stores.</p>.<p>Lululemon's direct-to-consumer business, which includes online sales, jumped 155 per cent in the second quarter ended Aug. 2.</p>.<p>Net revenue rose 2.1 per cent to $902.9 million, compared with estimates of $842.5 million, according to IBES data from Refinitiv. </p>
<p>Yogawear maker Lululemon Athletica Inc said on Tuesday it was "cautiously optimistic" about the holiday season and forecast current-quarter adjusted profit to fall as much as 20 per cent due to higher marketing expenses.</p>.<p>The company's shares, which have risen more than 50 per cent this year, were down about <span> </span>5 per cent in extended trading.</p>.<p>Lululemon said it would ramp up marketing spending on Mirror, the at-home fitness company it bought for $500 million earlier this year, to capitalize on booming demand for home workout classes spurred by the coronavirus and the opportunity to drive business during the holiday season.</p>.<p>The investment in Mirror, which is expected to generate $150 million in 2020 revenue, comes at a time the yogawear maker was forced to halt its in-store yoga and fitness classes, a key marketing strategy that had brought in more shoppers to stores.</p>.<p>Lululemon said it was preparing for a number of scenarios and pulled forward its investments in the digital channel as the busy holiday season approaches.</p>.<p>"Our starting point is that the environment remains uncertain. Covid is not yet contained in many of the markets where we operate," Chief Executive Officer Calvin McDonald told analysts.</p>.<p>Lululemon's relatively small stores, which constrain the number of shoppers it can allow inside, and reduced operating hours would impact store traffic in the second half of 2020, the company said.<span> </span></p>.<p>But to counter that, Lululemon said it would open 70 seasonal stores in key centers for the all-important holiday season to bring in more shoppers to its brick-and-mortar stores.</p>.<p>Lululemon's direct-to-consumer business, which includes online sales, jumped 155 per cent in the second quarter ended Aug. 2.</p>.<p>Net revenue rose 2.1 per cent to $902.9 million, compared with estimates of $842.5 million, according to IBES data from Refinitiv. </p>