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How Lululemon fell out of fashion
Farewell to figure-hugging leggings; baggy is in.
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Lululemon has not managed to interest existing customers in its latest products, says the writer.
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The Economist
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Lululemon Athletica, a brand famous for flogging leggings for over US$100 (S$129) apiece, has long been in vogue among investors as well as fashionistas.
Over the past decade the “athleisure” firm has reported operating margins of 15 per cent to 25 per cent, well ahead of rivals, in part owing to the vast share of sales it makes directly to customers. Its sales per square foot of shop space have reached around US$1,500 a year, also far outstripping other retailers.
