Stretched: Can Lululemon fend off its younger, hotter rivals?
Lululemon Athletica, once a leader in the athleisure market, is facing increased competition and challenges in its North American sales. Despite expanding internationally and achieving significant revenue growth, the brand's stock has plummeted due to investor concerns and internal turmoil. The company is undergoing leadership changes and addressing product quality issues, raising questions about its future in a crowded market.
- ▪Lululemon has seen its stock price drop from over US$511 to around US$130 in early May 2024.
- ▪The company is experiencing sales declines in North America, its largest market, despite international expansion.
- ▪Recent leadership changes include the appointment of former Nike executive Heidi O'Neill as CEO.
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It’s early evening in Toronto’s Leslieville neighbourhood, and in an airy room with exposed-brick walls, a group of women are lying on Reformer Pilates machines. Gripping resistance-weighted bands, bracing their cores and extending their legs in the air, they move through a ballet of minor agony, the likes of which are danced, in various forms, in gyms and studios around the world. These women, perspiring in their spare time, should be Lululemon’s people. And in the warm light of Assembly Movement’s studio, the brand’s silver, Omega-shaped logo does glint off more than a couple pairs of leggings. But so do the clustered dots of the Sweaty Betty trademark, the stylized “A” of Gap’s Athleta, and other labels that the Vancouver apparel pioneer paved the way for.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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