Lululemon stretches into ecommerce

Lululemon overall sales grow 2%
Charlie Richardson
29 January 2021
Lululemon stretches into ecommerce

What happened and why Namaste... Lululemon (-18.67%) is an experiential retail specialist. So with classes and workout studios struggling to lure back the 'loyal' clients (who have splashed out on a fresh new Peloton or even Lulu's very own Mirror), the yogi-retailer was forced to make online work wonders. So, it did. Despite the in-store downward dip, the athleisure trailblazer saw overall sales grow 2% as the Lululemon went hand-over-fist to cater to the germaphobes (AKA everyone)... Not so zen... Digital sales rocketed 150%+ as Lemon garms showed no sign of slowing in the Workout From Home world.E-Lulu... 61% of Lulu's total sales came from online, compared to just 25% during the same quarter last year, making Lululemon a modern day ecommerce machine. 🤔 Confirming suspicions... Previous quarter sales suggested that Lulu was well-prepped to stretch itself into the accelerated online world, and investors demonstrated just how well prepped they were... the stock tumbled 18% as investors saw little reason to expand their backing despite the resilient numbers. The rise of homeworking is fuelling demand for comfortable clothing. Lululemon’s products, which are stitched and fitted in across South-East Asia (Vietnam, Cambodia et al.), carry some of the fattest margin in US retail and that calls for an expansion... No budging... Stubborn Lemon rarely offer discounts on its range of sweatpants and sports bras, and its 22% operating margins last year, doubled those of Nike.Lululemon is upsizing... In a bid to increase its customer base and a move away from the founder’s vision, the company is expanding its size offering. 🎊 Welcome to 2020... For a normal retailer, this is nothing news, but given its history on the issue, this is news. Lulu's founder Chip Wilson resigned as chairman in 2013 weeks after he said Lululemon’s pants “don’t work for some women’s bodies.” With Chip out the picture, Lululemon’s new sizes will roll-out later this month, according to current CEO, Calvin McDonald. | The Takeaway Slimming stores... Lululemon's ecommerce success has proven the company can own the customer journey and maintain its margin. Lemon has always been an experience-driven brand, so with over 400 stores plotted around the globe seeing sales slashed in half, the athleisure leader is set for a store slim down.