Women haven’t abandoned Lululemon for cheaper copycats just yet. Lululemon just posted second-quarter results that beat Wall Street estimates and sales are up 15 per cent from this time last year.
The good news comes at a tough time for Lululemon. Shares are down and the retailer is facing more competition than ever before.
Gap’s Athleta is seen as Lululemon’s biggest threat. The activewear retailer is even going as far as to open stores in close proximity to Lululemon. Because Athleta’s stuff is cheaper, analysts speculated that women might abandon their beloved $98 yoga pants.
Nordstrom also got in on the yoga-wear trend, poaching Lululemon designers to curate its Zella line. And Lululemon is currently suing Calvin Klein for allegedly violating a patent they had on a certain pair of yoga pants.
The brand is continuing to innovate its clothing and stay one step ahead of competitors, CEO Christine Day said this morning in an earnings conference call.
Today’s results prove that Lululemon is more than capable of excelling under pressure. It looks like the activewear retailer is here to stay.
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