Latest news with #LululemonAthletica
CNBC
7 days ago
- Business
- CNBC
JPMorgan downgrades Lululemon, sees stock moving sideways from here
It's time to step to the sidelines when it comes to Lululemon Athletica , according to JPMorgan. The bank downgraded shares of the athleisure retailer to neutral from overweight. Analyst Matthew Boss slashed his price target to $224 from $303. The new forecast is less than 1% above Monday's close. "While lululemon remains underpenetrated internationally relative to peers with a notable opportunity to scale brand awareness, our work points to a normalizing pace of growth in China Mainland & product assortment challenges in the U.S. have driven elevated markdowns & a more moderate revenue growth profile for the business, with higher fixed cost leverage hurdles across ROD and SG & A expenses further constraining multiyear margins," Boss wrote. As a headwind, the analyst pointed to U.S. product catalysts pushed to the second half of the year, after customers responded poorly to Lululemon's updated core seasonal colors, which currently represents around 40% of the company's inventory mix. This has contributed to the company having to strategically offload inventory through summer promotions. "Importantly, as a result of relative underperformance within Core-Seasonal inventories, our fieldwork points to the 7/1 launch of the 'Summer Scores' promotional event advertised directly on the homepage of the DTC website & via digital marketing emails to begin clearing through additional inventory units on hand," Boss added. Meanwhile, normalizing growth in the Chinese market could ultimately cap Lululemon's CAGR — or compound annual growth rate. Stronger growth was experienced in the past few years, as the retailer scaled stores and its initial brand awareness investments. "Specifically, management noted the brand has shown relative insulation against an unfavorable China macroeconomic backdrop (though the macro environment still remains less than favorable), and our work points to a potential prolonged 'normalization' curve of revenue growth as the region aligns closer to management's +low-30s CAGR target (FY21-26), relative to a +48% CAGR experienced in FY23/24 (vs. FY21)," Boss added. LULU YTD mountain LULU YTD chart Shares of Lululemon have stumbled 42% this year.
Straits Times
18-07-2025
- Business
- Straits Times
Lululemon's best-selling black leggings now pile up at outlet stores
Find out what's new on ST website and app. Lululemon shares had declined 41 per cent in 2025 through July 16's close. NEW YORK – Lululemon Athletica is facing slowing sales, fewer store visitors and waning demand for its iconic black leggings as the yogawear retailer tries to pull itself out of a rough patch. Lululemon's core black leggings, which are vital products that rarely are discounted, are piling up at outlet stores, according to Randal Konik, an analyst at Jefferies. That's an alarming issue for Lululemon, he added, showing erosion in core demand for the brand's clothes. 'We've witnessed signals of a brand in decline and see risks to earnings ahead,' Mr Konik said in a note to clients on July 17. The analyst, a long-time critic of the company's strategy, has had an underperform rating on Lululemon's stock since 2022. Lululemon shares had declined 41 per cent in 2025 through July 16's close. Chief executive officer Calvin McDonald is trying to revive sales at Lululemon as the company faces rising competition from rivals such as Alo Yoga and Vuori. Lululemon has issued disappointing results in two straight quarters and trimmed its outlook for the full year. The CEO's efforts to double sales from 2021 to 2026 have hit several snags. Executives have said that profitability has been hurt by new US tariffs and warned investors that US consumers are cutting back spending. In June, Lululemon cut 150 corporate employees after a review of its organisational structure. Lululemon's observed sales in the US fell 4.2 per cent in June, according to Bloomberg Second Measure, which tracks anonymous debit and credit transactions. That's the biggest drop since November. Top stories Swipe. Select. Stay informed. World Trump diagnosed with vein condition causing leg swelling: White House World Trump was diagnosed with chronic venous insufficiency. What is it? Singapore 5 foreigners charged over scheme to deliberately get arrested in S'pore to sell sex drugs here Asia Appointment of Malaysia's new chief justice eases controversy over vacant top judge seats for now Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore Singapore SPCA appoints Walter Leong as new executive director World US strikes destroyed only one of three Iranian nuclear sites, says new report Business Granddaughter of late Indonesian tycoon pays $25 million for Singapore bungalow An adjusted version of Bloomberg Second Measure's observed sales metric shows that the retailer's US sales are on track to decline 2.8 per cent in the quarter that runs through July. Analysts on average expect a gain of 1.9 per cent. Meanwhile, foot traffic to Lululemon's US stores fell more than 8 per cent in June, according to which measures visits through mobile device data. 'Designs still look disjointed, inventory growth is accelerating and sales cracks are expanding,' Mr Konik said in his note. BLOOMBERG
Business Times
17-07-2025
- Business
- Business Times
Lululemon's best-selling black leggings pile up at outlet stores
[NEW YORK] Lululemon Athletica is facing slowing sales, fewer store visitors and waning demand for its iconic black leggings as the yogawear retailer tries to pull itself out of a rough patch. Lululemon's core black leggings, which are vital products that rarely are discounted, are piling up at outlet stores, according to Randal Konik, an analyst at Jefferies. That's an alarming issue for Lululemon, he added, showing erosion in core demand for the brand's clothes. 'We have witnessed signals of a brand in decline and see risks to earnings ahead,' Konik said in a note to clients on Thursday (Jul 16). The analyst, a long-time critic of the company's strategy, has had an underperform rating on Lululemon's stock since 2022. Lululemon shares had declined 41 per cent this year to Wednesday's close. A representative for Lululemon did not immediately respond to a request for comment. Chief executive officer Calvin McDonald is trying to revive sales at Lululemon as the company faces rising competition from rivals such as Alo Yoga and Vuori. Lululemon has issued disappointing results in two straight quarters and trimmed its outlook for the full year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The CEO's efforts to double sales from 2021 to 2026 have hit several snags. Executives have said that profitability has been hurt by new US tariffs and warned investors that US consumers are cutting back spending. In June, Lululemon cut 150 corporate employees after a review of its organisational structure. Lululemon's observed sales in the US fell 4.2 per cent in June, according to Bloomberg Second Measure, which tracks anonymous debit and credit transactions. That's the biggest drop since November. An adjusted version of Bloomberg Second Measure's observed sales metric shows that the retailer's US sales are on track to decline 2.8 per cent in the quarter that runs to July. Analysts on average expect a gain of 1.9 per cent. Meanwhile, foot traffic to Lululemon's US stores fell more than 8 per cent in June, according to which measures visits through mobile device data. 'Designs still look disjointed, inventory growth is accelerating and sales cracks are expanding,' Konik said in his note. BLOOMBERG
Time of India
16-07-2025
- Business
- Time of India
Lululemon coming: Can India build a desi yoga brand?
Lululemon Athletica is coming to India by partnering with Tata CLiQ . The Canadian athletic apparel retailer began as a small brand for yoga apparel and grew into a big global company which designs, distributes and retails athletic apparel, footwear and accessories, and, of course, yoga pants. It will open its first store in India as well as e-commerce on their luxury and fashion platform in the second half of 2026. Lululemon's entry into India might appear as an ironic twist to many, forcing them to think why the biggest global yoga brand belongs to Canada and not India, the home of yoga. Yoga may have its home in India, but its workplace is America. With thousands of yoga studios dotting big cities as well as small, nondescript towns; dozens of yoga styles; and millions of practitioners, you could be excused for thinking that yoga is more American than Indian. Commodification of yoga aside, so many people doing yoga do offer vast business opportunities of different kinds. Yet India, the home of yoga, has failed to produce any global yoga merchandise brand. It's fair to say that India has not only neglected its heritage of yoga, but also failed to capitalise on its huge popularity in the West. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The rise of Lululemon Lululemon started out small in Vancouver in Canada in 1998 as a company selling yoga apparel, mostly stretchable leggings made of nylon and lycra for women, perfect for all the stretching and sweating in a yoga session. The West Coast, known for its hippie culture, was the best locale for such a company. In 2013, the company made its third consecutive appearance on Fortune's Fastest-Growing Companies list. The yoga crowd was looking for a lifestyle definition and Lululemon provided it. Lululemon clothes became the uniform of American yogis. The trend caught on even among people not doing yoga. Lululemon-style leggings started displacing jeans as people began using them as casual wear. Jeans companies tried using stretchable denim to compete with the yoga leggings. Live Events In 2007, Lululemon came out with an initial public offering, raising $327.6 million by selling 18.2 million shares. The next year, Christine Day, a former co-president of Starbucks, became its CEO. Today, Lululemon is another name for yoga in the West. With a presence in more than 30 markets around the world, it has a footprint across North America, EMEA, Asia Pacific, and China Mainland. In 2024, the company surpassed $10 billion in annual revenue for the first time, driven by growth across our merchandise categories, channels, and markets, as per its annual report. It saw growth in every market that it operates in, and its total revenue rose by 41% in China Mainland, 27% in Rest of World, and 4% in the Americas. India is a crucial piece in Lululemon's strategy as it chases global growth. In 2021, it opened a tech hub in Bengaluru, its first outside North America. The idea was to step up its digital offerings and omnichannel experience. The Bengaluru centre works in areas such as data science, machine learning, and full-stack cloud engineering to support merchandise planning, product and location information management. The business of yoga The global yoga clothing market size reached $28.8 Billion in 2024, as per a report by IMARC Group, a market research company. It expects the market to reach $53.4 billion by 2033, exhibiting a CAGR of 6.54% during 2025-2033. The rising health and wellness awareness, increasing athleisure trend, burgeoning participation in yoga, growing focus on comfort and performance, rising influence of social media and celebrities, and a rising number of specialty brands are some of the major factors propelling the market. Top-tier brands like Lululemon and Alo target premium consumers while giants like Nike and Adidas serve broader markets including budget-conscious buyers. Premium players face pressure from discounting and competition. Lululemon has had to mark down items up to 40%, with full-price sell-through dropping from 95% to 75%. North American saturation makes international growth essential as the global yoga clothing market is far from saturated. Fueled by wellness trends, athleisure's everyday appeal, tech-enabled materials, and e-commerce growth, it's poised to grow significantly. While North America remains dominant, emerging markets and under-served segments (men, children, sustainable fashion) present major growth avenues. Success will hinge on innovation, both product and experiential, as well as strategic expansion and sustainability commitments. Can India create another Lululemon? Lululemon created the apparel for a niche customer, the West Coast yogi who wanted to perform yoga in comfortable attire and also look good while doing that. But surely an Indian company manufacturing yoga merchandise right inside the home of yoga too can have traction among yoga customers across the world. Yoga merchandise is not limited to leggings and bras. It could be T-shirts, yoga mats, jute bags, pillows and bolsters and yoga props such as ropes and swings. Khadi products as yoga merchandise will carry authentic branding. A new yoga attire can be invented made of khadi which is not skin-hugging but light and airy, and organic to boot. Now that India has started promoting yoga as India's contribution to the world, can Indian businesses ride the global yoga wave?
Time of India
15-07-2025
- Business
- Time of India
Canada's Lululemon partners with Tata CLiQ for India debut
Mumbai: Lululemon Athletica , a Canadian athletic apparel retailer known as the inventor of yoga pants , will open its first physical store and online storefronts in India in the second half of 2026 in partnership with Tata CLiQ. The brand plans to introduce its portfolio of athletic and lifestyle apparel, footwear, and accessories. Its ecommerce storefronts will come up on Tata CLiQ's luxury and fashion platforms, the company said on Tuesday. "Bringing lululemon to India has been a part of our market expansion roadmap for a number of years and represents an exciting milestone in our international growth journey," Andre Maestrini, executive vice president of International at lululemon, said. In May last year, ET first reported on lululemon's likely entry when its global team visited India to scout for potential store locations. About four years ago, the Canadian company opened a tech hub in Bengaluru, its first outside North America, to push global growth by using data science, machine learning, and full-stack cloud engineering to support merchandise planning and product and location information management. Lululemon Athletica has a presence in more than 30 markets across North America, Europe, Middle East and Africa (EMEA), Asia Pacific, and China Mainland. With a population of 1.4 billion, India is one of the largest and fastest-growing consumer markets where demand for fitness and athleisure wear is on the rise. Sales of nearly half a dozen leading sports brands in the country have sprinted in the past few years, since the Covid-19 pandemic, as people started prioritising health. Most global brands have been around for more than two decades in India and have grown by virtue of pushing their wares partnering cricket and other sporting activities. The newer entrants have been positioning themselves as comfortable lifestyle and regular athletic wear brands.
