With the increase in demand due to the "athletic fashion" trend caused huge growth for the company in the beginning of the year and at the end of 2015. The yoga pants trend caused huge demand for Lululemon products as an alternative for everyday wear. Based on the results of this year sales, many are arguing that this trend has changed. Lululemon is facing huge competition in the market today from companies such as Under Armour, Nike, and other businesses who are considered less expensive. The trends show that Lululemon is facing a tough period in sales. According to the Financial Post, Lululemon's stocks rose by 0.46 in recent period and has added the addition of 86 new mutual fund as owners, in the past quarter. This demonstrates that the trends in the apparel industry are changing and are shifting away from active wear.
Denim is Back
Trends predict that people are now favouring jeans instead of yoga pants. According to analyst Betty Chen, women are now favouring ripped and distressed jeans as well as retro athletic styles from Adidas and Puma. These trends are caused by many celebrities and stores who are promoting and wearing this style. This was also indicated due to change in average sales of yoga pants. In 2017 so far, the average number of pants a customers owns is 3 pairs which is down from last years 4 pairs.
However, there are some analysts who predict growth for the next year, however, giving the performance in the past months, many are also concerned. One suggestion for Lululemon is in order for them to stay relevant in the market, they might need to shift their production strategies to satisfy the new trends whether that is towards denim, or any other upcoming trend.
Sources:
http://business.financialpost.com/news/retail-marketing/a-shift-from-yoga-pants-may-leave-lululemon-athletica-investors-in-a-sweat
http://www.benzinga.com/analyst-ratings/analyst-color/16/12/8770888/athleisure-bubble-lululemon-could-face-trouble-heading-i
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