×
150
Fashion Jobs
SAROJ JALAN
Marketing Strategist
Permanent · KOLKATA
ADD UR CO LLP
Production Manager
Permanent · Chennai
THE GLOBAL ZONE HR SERVICES
Production Manager/ Supervisor/ Incharge
Permanent · Pune
PUMA
Manager - Digital Marketing
Permanent · Bengaluru
THE BANYAN HR CONSULTS
Brand Manager For Leading Women's Wear Garments CO at Coimbatore
Permanent · Coimbatore
LEVI'S
Manager, Retail Merchandising (Ebo)
Permanent · Bengaluru
GLAN MANAGEMENT CONSULTANCY
Senior Buyer Lingerie (Knits Western Wear) - Retail Brand
Permanent · GURUGRAM
JOB INDIA
Asst. Manager E-Com Operations (Garments Retail) Gurgaon
Permanent · Faridabad
VASTRAKALA EXPORTS
Quality Manager
Permanent · CHENNAI
PEOPLE ALLIANCE WORKFORCE PRIVATE LIMITED
Manager / in Charge - Production/Quality/Cutting - Garments Industry
Permanent · Bhiwandi
MINT AND MILK COMMUNICATIONS
Senior Account Executive
Permanent · MUMBAI
PUMA
Manager- Buying (Apparel)
Permanent · Bengaluru
PUMA
Manager- Business Intelligence
Permanent · Bengaluru
PUMA
Manager- Trade Compliance
Permanent · Bengaluru
LEVI'S
Technical Product Manager
Permanent · Bengaluru
PUMA
Manager- Supply Planning
Permanent · Bengaluru
PUMA
Senior Manager - Performance Marketing- Marketplac…
Permanent · Bengaluru
PUMA
Regional Sales Manager- Mbo (South)
Permanent · Bengaluru
PUMA
Manager- Returns And Spf Operations
Permanent · Bengaluru
PUMA
Manager Merchandising
Permanent · Bengaluru
PUMA
Project Manager- Operations
Permanent · Bengaluru
PUMA
Manager- Logistics Operations
Permanent · Bengaluru
By
Reuters
Published
Apr 1, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Sour Lululemon results may signal squeeze for athletic leisure lines

By
Reuters
Published
Apr 1, 2017

The steep drop in Lululemon Athletica's stock price, following a sales warning that resulted from poor colour choices in the company's spring collection, turns the spotlight on slowing growth in the athleisure category pioneered by the Canadian yogawear retailer.

Shares of rivals Nike Inc and Under Armour also were down on Thursday, raising questions of whether athletic leisure wear can maintain its torrid growth amid competition from denim and possible shopper fatigue with the now decade-old fashion category.


Photo: Lululemon


In the age of fast fashion, when trends change overnight, athletic leisure wear is showing signs of age. Industry-wide sales in North America have grown 39.2 percent to $26.05 billion in the last five years, according to Euromonitor.

However, sales in the category are expected to grow at 5.2 percent in 2017, slower than the average 6.9 percent rate at which the category had grown in the last five years.

The latest quarterly results have also indicated a slowdown from the marquee manufacturers.

The last few years have seen a surge in the number of retailers offering athleisure clothes, ranging from mass-market products sold by retailers such as Gap Inc to $1,000 leggings from designers such as Alexander McQueen.

"There is no more the growth that was there before and there are way more competitors for the brand (Lululemon) compared to when they'd started 10 years ago," Jan Rogers Kniffen, chief executive of consulting firm J. Rogers Kniffen WWE, said.

A hash of celebrity brand launches, including Beyonce's Ivy Park line in April last year, has also competed for sales at the traditional retailers.

"Nordstrom has got a private label on athleisure, JC Penney has also got a private label on athleisure, Kohl's has got a private label on athleisure. Everybody is doing it at every price point," Kniffen said.

A comeback in denim, led by 1970s-inspired wider leg denim pants and higher waist jeans from Forever 21 and H&M, is also eating into demand for athleisure wear.

"We continue to believe trend shifts away from athleisure to denim will present stiffening headwinds to LULU," Canaccord Genuity analyst Camilo Lyon said.

The stock market is giving the industry little room for error. Nike's shares fell as much as 7.3 percent after the company reported lower-than-expected quarterly revenue last month, while Under Armour's shares fell 28 percent in January after it forecast 2017 sales well below analysts' estimates.

"Over the past 12-24 months, other athletic wear bellwethers such as NKE and UA have seen meaningful multiple contraction once sales started slowing and margins stopped expanding," said Ike Boruchow, analyst with Wells Fargo, in a research note.

The market on Thursday showed little patience for Lululemon's disappointing results, too. The company's shares closed down 23.4 percent at $50.76.

 

© Thomson Reuters 2022 All rights reserved.