Finance: Lululemon surges after beating on earnings and announcing store closures for its kids' line (LULU)

Ivivva, the activewear brand for girls, will become a primarily online-only business

Lululemon gained as much as 8% in extended trading on Thursday after the company reported better earnings and revenues than expected, and plans to restructure its kids' clothing line.

Ivivva, the activewear brand for girls, will become a primarily online-only business as 40 of the 55 stores close, Lululemon said in its earnings statement.

Half of the remaining locations will be converted to Lululemon stores. All Ivivva-branded showrooms will be shut down.

Lululemon expects the restructuring to be mostly completed by the third quarter of fiscal 2017, and anticipates $50 to $60 million in pre-tax costs during the fiscal year related to this.

Lululemon said adjusted earnings per share in the first quarter was $0.32, beating analysts' forecast for $0.28, according to Bloomberg. Net revenue totaled $520.31 million, ahead of the estimate for $513.69 million.

However, the company's net revenue projection of $565 million to $570 million trailed analysts' expectation for a range of $537 million to $587 million.

Ivivva, the activewear brand for girls, will become a primarily online-only business Read Full Story