There is no doubt that Lululemon is a champion in the athleisure category. They have been popular since inception by providing soft, comfortable athletic wear that is fashionable and trendy. Last year was a bumpy ride for a lot of retail, but lululemon came out strong in the 4th quarter of 2022 with revenues surging roughly 30%. Although they had huge increases in revenue, one product in particular that they sell did slow them down a bit. The Mirror, an interactive mirror that offers fitness classes didn’t seem to be as popular of a product as they had hoped. They believe this was due to how expensive it was to, one, own the mirror, and two, the cost of membership. Now, they are offering a new loyalty program to build their customer base and gain consumer engagement for anyone even if they do not own the Mirror.
According to the article, “Lululemon surpassed its own expectations for 2022, exceeding the $8 billion mark for the first time on its path to $12.5 billion in revenue by 2026. Next year, the retailer is planning to reach up to $9.4 billion in revenue, which would represent 16% growth.” This is tremendous news for the athleisure brand and even with having a product such as the Mirror not being as popular as they had hoped, they are still on great path of success. Lululemon is also focusing efforts on rolling out new running shoes for men and women in hopes generate some traction in the footwear category from its already large client base. It will be fun to watch as the brand expands and continues in popularity.
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