Dive Brief:
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Beleaguered activewear phenom Lululemon Athletica reported lower Q1 and 2013 full year earnings last week, but saw stock rise because they beat expectations.
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The upscale yoga wear maker and retailer has been reeling from a series of cringe-inducing public retaliations fiascoes and booming competition at the same time this past year.
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The company has launched “&go,” a line of clothes designed for activity like biking and yoga that can also be worn as casual wear at the office or bar. It is also expanding its menswear line.
Dive Insight:
Lululemon's new CEO Laurent Potdevin acknowledged that the retailer must be more inclusive in its offerings to consumers, and more wise about its increased competition. When it comes to product lines, the company is doing all the right things: expanding into areas like cycling and tennis, advancing further into men’s lines, and introducing the concept of clothing that performs both in the gym and in the real world. But Lululemon has proven just this year — long after it should have learned its lesson — that it can be clueless about how to treat its customers, including some of its most loyal fans. While it will likely do well with its new &go line, its competition is not going away. In fact, there are new competitors all the time — including apparel retailers like Urban Outfitters that offer wear-anywhere activewear at much lower price points.