I really appreciate your level of financial analysis. It is rare to see someone who is able and willing to do so. And you can also apply the marketing/strategic gloss on top of it. Thank you!
I never understood what's the big deal about their way overpriced pants. I wear same looking ones I bought years ago at Target (before Target went woke) and they look the same. Just black leggings. No one cares.
This is a marvelous perspective on several fronts. Forward-looking growth expectations, forward and trailing PE valuations, home market strength, demographics, fluid consumer trends, being seen, and the kicker: what you've done vs. how well you talk about what you've done.
The problems she is walking into are the same she left behind and helped create at Nike, which is Wokism. That includes embracing Transgenderism and the division of apparel by race and gender in line with identity politics. If she brings that same mindset to Lulu, and probably will, she will get the same result. I am thinking of shorting LULU with her at the helm
there's that. but also product - lack of innovation and newness. product problems and recalls. retailing issues. lack of brand strength. i'm not saying that isn't part of it. but it isn't the whole story.
Isn't it fascinating how failing up is a thing? Bonus incentive being 200% of her base salary. Those numbers are certainly drool worthy! Leaving a company that is being removed from the S&P to work her magic at Lulu. I feel as though it's a "hold my beer" challenge. We know the impact of "Go woke, go broke." In this case, Lulu has been quietly going this direction, and my suspicion is we're going to soon be seeing Jaguar level of screaming it from the rooftops type ads coming out of Lulu in the near future. Will they rehire their favorite brand tanker to repeat the performance with Lulu? So much inspiration out there. Which one will they pick, or will they go even bigger? Scream it louder? I think it's more likely than not. It's when they scream it the loudest that causes customers to walk away and boycott. What I find puzzling is that woke ads appeal to the maybe 5-10% of the general population, I am uncertain what percentage buys or wears Lulu from that group. We can fairly assume it will not be the full 5 -10%. It also risks alienating ~70-80% if the polling numbers about how many people hold conservative values and if those numbers are correct. This group is likely to disagree with the in your face levels of virtue signalling that will likely to be coming out under this new leadership. It's numbers and basic common sense. It's fascinating that companies are willing to risk the 70-80 percent in the hand to virtue signal to what likely amounts to 3-5% that will buy their products because of said virtue signals -if we're optimistic. At the end of the day, it's athletic wear. Why does it need to be politicized? How about they stop making it toxic and avoid using forever plastics in their clothing? Make good quality clothing, make it safer and with healthier products and methods and try to be innovative and interesting in what they do make? Do better for your active customers instead of trying to make a political statement? We're all exhausted by corporations falling all over themselves with whatever ridiculous virtue signalling campaign they can come up with next. Although watching companies fail with popcorn in hand can be quite entertaining. The fatigue is real. So is the money that can happily and easily walk away, and in most cases, stay away. Let's see if this new leadership will lead it away from the direction Nike went, or jump ship after they have steered Lulu into the giant woke iceberg and goes the way of the Titanic. Only time will tell, but I have come to realize that how corporations do one thing, is often how they do everything. Just like human beings. Will we be seeing a repeat performance and Lulu getting delisted from the S&P? Have your popcorn ready and get comfortable.
The reason they do the unthinkable, in my opinion: they, figuratively, want the approval of the ladies on "The View." They have bought into the "oppression Olympics" ideology such that they consider any pandering that they do to that 3-5% portion of the market is unassailable. It's what my AI search engine would call a "category error." Add in the fact that they hang around people, and ONLY hang around people, that agree with them on everything, and, add in the notion that they consider anyone who might disagree with them must be "out of touch."
Wilson talks about how he designed Lululemon's marketing around the "Super Girl," a 32-year-old woman "with an amazing career and spectacular health. She was travelling for business and pleasure, owned her own condo, and had a cat. She was fashionable and could afford quality."
I wonder if part of it is women moving on from yoga? No data on this just anecdotal. The Seattle yoga scene was swamped with ugly accusations of ‘cultural appropriation’ and all the popular grievances when a longtime practitioner with several studios unexpectedly sold to a businessman with the correct cultural background and zero experience—and then Covid hit. I don’t think the scene has come back, or will.
I think that's part of it. But leggings are worn well beyond the studio too. And the trend is moving towards baggier sweats and track pants for casual wear.
I'm seriously ready for sweats and track pants to make a comeback. I was looking for a pair of sweat pants not that long ago and was left hanging. I would have had to basically make my own, everything was very lightweight and yoga pants like. I am a plus size so there is that but it used to be very easy to find a pair of sweats, nowdays not so much. Plus I wanted 100% cotton which is also hard to find.
Maybe, because not even 7%of yoga pants ever make it to yoga class, and any female carrying more than about 5 lbs extra begins to feel the wedgie in front yard as well as in the backyard. Not to mention about that level of overactive fork begins spandex begins to look rather obscene.
Lululemon supports transgender cult ideology.
Lgbtq Pride Clothing | lululemon https://shop.lululemon.com/a/lgbtq-pride-clothing-0sfz11a
Geez, those are ugly.
Annnd, that’s why I won’t even walk in their stores anymore.
My head hurts after reading all that!
From “Just an old guy who wants to look OK”
Keep up the good work Jenn!!!
Sorry i made your head hurt!
I really appreciate your level of financial analysis. It is rare to see someone who is able and willing to do so. And you can also apply the marketing/strategic gloss on top of it. Thank you!
I just couldn’t avoid the opportunity to ‘poke’ the marketing folks!!!🤪🤪🤪
🥴🥴It was interesting and as an Engineer I appreciated the level of detail you went into!!
I remember when Lululemon got caught on a scandal because some of their leggings were quite sheer when women bent over.
Chip’s response was that there was nothing wrong with the pants; big women were buying pants that were too small. That’s when he stepped down!
Yes that was bad.
I never understood what's the big deal about their way overpriced pants. I wear same looking ones I bought years ago at Target (before Target went woke) and they look the same. Just black leggings. No one cares.
Sey’s stuff isn’t exactly cheap either.
This is a marvelous perspective on several fronts. Forward-looking growth expectations, forward and trailing PE valuations, home market strength, demographics, fluid consumer trends, being seen, and the kicker: what you've done vs. how well you talk about what you've done.
The problems she is walking into are the same she left behind and helped create at Nike, which is Wokism. That includes embracing Transgenderism and the division of apparel by race and gender in line with identity politics. If she brings that same mindset to Lulu, and probably will, she will get the same result. I am thinking of shorting LULU with her at the helm
there's that. but also product - lack of innovation and newness. product problems and recalls. retailing issues. lack of brand strength. i'm not saying that isn't part of it. but it isn't the whole story.
That’s the problem with the woke mind virus, you don’t realize you’ve got it.
Excellent analysis. It's nice to hear it straight, especially from someone who lived it, and, doesn't have a dog in the hunt.
Liberal Canadian brand…no thanks
Won’t even go in their stores anymore. Not with those stupid everybody’s welcome crap signs in the windows.
You don’t have to tell us what you aren’t going to do.
Isn't it fascinating how failing up is a thing? Bonus incentive being 200% of her base salary. Those numbers are certainly drool worthy! Leaving a company that is being removed from the S&P to work her magic at Lulu. I feel as though it's a "hold my beer" challenge. We know the impact of "Go woke, go broke." In this case, Lulu has been quietly going this direction, and my suspicion is we're going to soon be seeing Jaguar level of screaming it from the rooftops type ads coming out of Lulu in the near future. Will they rehire their favorite brand tanker to repeat the performance with Lulu? So much inspiration out there. Which one will they pick, or will they go even bigger? Scream it louder? I think it's more likely than not. It's when they scream it the loudest that causes customers to walk away and boycott. What I find puzzling is that woke ads appeal to the maybe 5-10% of the general population, I am uncertain what percentage buys or wears Lulu from that group. We can fairly assume it will not be the full 5 -10%. It also risks alienating ~70-80% if the polling numbers about how many people hold conservative values and if those numbers are correct. This group is likely to disagree with the in your face levels of virtue signalling that will likely to be coming out under this new leadership. It's numbers and basic common sense. It's fascinating that companies are willing to risk the 70-80 percent in the hand to virtue signal to what likely amounts to 3-5% that will buy their products because of said virtue signals -if we're optimistic. At the end of the day, it's athletic wear. Why does it need to be politicized? How about they stop making it toxic and avoid using forever plastics in their clothing? Make good quality clothing, make it safer and with healthier products and methods and try to be innovative and interesting in what they do make? Do better for your active customers instead of trying to make a political statement? We're all exhausted by corporations falling all over themselves with whatever ridiculous virtue signalling campaign they can come up with next. Although watching companies fail with popcorn in hand can be quite entertaining. The fatigue is real. So is the money that can happily and easily walk away, and in most cases, stay away. Let's see if this new leadership will lead it away from the direction Nike went, or jump ship after they have steered Lulu into the giant woke iceberg and goes the way of the Titanic. Only time will tell, but I have come to realize that how corporations do one thing, is often how they do everything. Just like human beings. Will we be seeing a repeat performance and Lulu getting delisted from the S&P? Have your popcorn ready and get comfortable.
The reason they do the unthinkable, in my opinion: they, figuratively, want the approval of the ladies on "The View." They have bought into the "oppression Olympics" ideology such that they consider any pandering that they do to that 3-5% portion of the market is unassailable. It's what my AI search engine would call a "category error." Add in the fact that they hang around people, and ONLY hang around people, that agree with them on everything, and, add in the notion that they consider anyone who might disagree with them must be "out of touch."
Wilson talks about how he designed Lululemon's marketing around the "Super Girl," a 32-year-old woman "with an amazing career and spectacular health. She was travelling for business and pleasure, owned her own condo, and had a cat. She was fashionable and could afford quality."
Here: https://book.chipwilson.com/wp-content/uploads/sites/8/2022/01/the-story-of-lululemon-by-Chip-Wilson.pdf
Remember when you hired Chloe Cole as your brand ambassador and she took a selfie of herself wearing Nike?
By the way that was a fantastic article, many thanks for taking the time and care in putting it together.
I wonder if part of it is women moving on from yoga? No data on this just anecdotal. The Seattle yoga scene was swamped with ugly accusations of ‘cultural appropriation’ and all the popular grievances when a longtime practitioner with several studios unexpectedly sold to a businessman with the correct cultural background and zero experience—and then Covid hit. I don’t think the scene has come back, or will.
I think that's part of it. But leggings are worn well beyond the studio too. And the trend is moving towards baggier sweats and track pants for casual wear.
I'm seriously ready for sweats and track pants to make a comeback. I was looking for a pair of sweat pants not that long ago and was left hanging. I would have had to basically make my own, everything was very lightweight and yoga pants like. I am a plus size so there is that but it used to be very easy to find a pair of sweats, nowdays not so much. Plus I wanted 100% cotton which is also hard to find.
Should call themselves Lululabia.
Vulva-hugging pants have got to go.
Maybe, because not even 7%of yoga pants ever make it to yoga class, and any female carrying more than about 5 lbs extra begins to feel the wedgie in front yard as well as in the backyard. Not to mention about that level of overactive fork begins spandex begins to look rather obscene.