Here’s What Lululemon Will Concentrate On Going Forward (Part 1)
After a slow start, Lululemon Athletica (NASDAQ:LULU) is seeing good growth in the year thus far. Despite the slowing growth in the apparel industry, the company has managed to come out on top and post good growth figures consistently, while competitors like Under Armour fall short. Going forward, the company hopes to keep this momentum going and has highlighted four key areas of growth that it will concentrate on.
Product Innovation
While larger competitors like Nike and Adidas have largely ignored the women’s sports apparel space, Lululemon has built a successful brand around it. Today, the company is a leader in women’s yoga pants, and is quickly becoming a heavy duty player in the athleisure space.
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That said, in a cut-throat industry like the apparel industry, defining and redefining its offerings is the only way to compete efficiently. One slip up and competitors will be quick to seize the market. Constant innovation is the only way to stay in the game. In this respect, Lululemon has been at the forefront of fabric innovation. With their latest Everlux technology and like-nothing pants, the company has completely beat out competition at the product level, providing great quality at reasonable prices. Additionally, Lululemon’s recently launched Enlite line of sports bras have taken the market by storm, and are being widely appreciated by customers globally.
Additionally, in the most recent earnings call, it was revealed that the company is working on many new exciting products that are set to hit the shelves soon. We can expect to learn more on these developments in the coming weeks.
Delving Into Men’s Designs
Lululemon has largely not focused on men’s clothing since its inception, despite offering a wide men’s collection. However, the company is now determined to shed this image. It has begun work on growing its men’s segment to compete with larger players in the game, and with trendy athleisure on a steady rise, it seems like the best move.
Over the past few quarters, the company has worked hard on promoting its men’s range of clothing. With heavier advertising and targeted marketing, Lululemon is seeing a positive change in sales generated from its men’s segment. Additionally, in an effort to best showcase its collection and give men and women equal importance, the company has been steadily increasing the number of co-located stores in the North American region. The approximately 5,000 square foot locations have allowed the company to catalog a broader assortment of men’s lines.
In the latest quarter, the company saw revenues at the segment increase by a significant 23%, and is expected to grow even quicker in the coming quarters. We expect the men’s business to show great promise going forward.
This article comprises the first part of our two part series. Other focus areas will be elaborated on further in the coming parts.
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