REPORT Ryan Duck,
[email protected], 415.364.3779 Lululemon Craze Has Not Peaked, Thanks to Crossover Styling Companies: FRA:ADS, GPS, HBI, LULU, NKE, TGT, UA, VFC, WMT May 10, 2012 Research Question: Has the Lululemon yoga clothing craze peaked? Silo Summaries Summary of Findings 1) LULULEMON STORES The craze for Lululemon Athletica Inc. (LULU) clothing has not All six sources said sales were positive and growing and peaked, and the brand‘s popularity is expected to further increase that the men‘s and running lines were gaining traction. this year. Lululemon continues to extend beyond the yoga Lululemon‘s popularity has continued because of word of community into other sports and everyday wear. mouth, lifestyle branding, and frequent color and style changes. Lululemon is opening new stores worldwide, The ability to wear Lululemon for both style and exercise which should boost its popularity even further. The distinguishes the brand from its competitors. Twenty-two of 28 company has no close competitor. Inventory levels have Lululemon customers taking part in an online Blueshift survey been appropriate, and prices are the same year to year. said style played heavily in their decisions to choose Lululemon. 2) APPAREL SHOPS Lululemon has experienced an increase in male customers, Lululemon is continuing to grow for all six sources. The according to all six store sources. Also, its greater emphasis on its shops‘ customers wear Lululemon for workouts and to run running gear, which four store sources described as the brand‘s errands. Four of six sources said the Lululemon craze has trendiest line, has helped grow sales and store traffic.