- Lululemon sales soared in the most recent quarter.
- The clothing giant is benefiting from people wanting to wear more comfortable clothing.
- Consumers are favoring more casual styles as they return to the workplace too, an analyst said.
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Pandemic-driven comfort dressing continues to prevail.
Athleisure giant Lululemon reported second-quarter earnings on Wednesday, with sales soaring 63% in the US and Canada and 49% internationally. This put it on track to surpass its 2023 revenue target by the end of this year, the company said.
Customers favored comfortable clothing while working from home during the pandemic – but Lululemon’s momentum shows no sign of slowing down even as the world begins to return to normal life, experts say.
“Casual and comfortable are still the order of the day,” GlobalData Retail managing director Neil Saunders said in a note to clients earlier in the summer.
“While we expect working from home to wane somewhat over the next year and believe that there will be a surge in the purchase of more formal styles as it does, we think that the more casual stance is here to stay for a while,” he said.
This is helpful for Lululemon, Saunders said – alongside its core products, it has casual collections of dresses for women and pants for men. These are comfortable, but also suitable for the office, he said.
According to a recent New York Times report, Lululemon’s stretchy men’s ABC (Anti-Ball Crushing) pants have already become popular attire for men working on Wall Street.
“The days of people having to wear the uniform of a coat, tie, and suit are over,” John Florsheim, an executive at legacy shoemaker Florsheim, told The Times. “It’s going to continue to get more comfortable and casual.”