Lululemon Looks Beyond Yoga Wear for Growth

Posted: April 17, 2014 at 9:54 pm


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TORONTO Lululemon Athletica Inc (LULU), best known for its trendy yoga wear, hopes to drive growth in coming years by expanding its range of fitness-related apparel and accelerating international plans, its newly appointed chief executive said on Thursday.

Laurent Potdevin, who was recruited to revive the company's fortunes after an embarrassing recall and supply chain issues last year raised questions about growth prospects, made the comments in Vancouver at the retailer's analyst day.

He said the company's casual wear, which uses many of the fabrics and technology developed for its yoga gear, would become a key component of its growth.

Lululemon's push into other product lines comes as it faces stiffer competition in the niche market it once dominated.

The company, which eschews traditional advertising for word-of-mouth branding, recently launched a limited collection of casual fitness wear called "&Go" to test demand.

"The recent success of our &Go capsule, which I'm sure you've seen, speaks to the elasticity of the brand," said Potdevin during his presentation.

"This lifestyle product collection resonated with our guests exceptionally well and will become an important part of our collection."

But Vancouver-based Lululemon, which opened its first European store in London earlier this month as part of its international drive, is still dealing with the fallout from last year's recall of yoga pants that proved too see-through.

The company, which once boasted same-store sales growth of more than 30 percent, reported its first decline in quarterly comparable sales since 2009 last month, hit by weak post-Christmas holiday sales.

The company's rapid growth in recent years, combined with its March 2013 recall, caused supply chain issues last year. Delivery problems of products to stores and an overhaul of the company's quality control have hampered performance.

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Lululemon Looks Beyond Yoga Wear for Growth

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Written by simmons |

April 17th, 2014 at 9:54 pm

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