Lululemon Athletica’s Revenue Increase
Daibelis Acevedo
Fashion Editor
Since the pandemic began, consumers began to shift their wardrobes and alter their choices for the more comfortable, and flexible clothing possible. Working from home became the new norm and jeans were completely out of the door. The world is just slowly getting back to normal with regular outings, and pre-pandemic celebrations, which means for a large chunk of time athletic clothing was what everyone was wearing.
Lululemon Athletica’s revenue increased above any of their expectations for the year 2021 with a net revenue increase of 30%. The company did not foresee these spikes in its sales prior to the pandemic, and the shutting down of the world. Lululemon is a higher-end athletic clothing brand that has usually targeted a certain kind of consumer, after the pandemic, their consumer base increased at an astounding rate.
Recently, Lululemon announced that their estimates are once again above expectations, and they predict that the increase will continue to remain. Even though hundreds of companies and employees are returning to work, there seems to be a new norm for everyday clothing, work clothing, and outerwear. It is quite interesting to see how fashion has evolved after the pandemic and how this has affected the choices of consumers. Pre-pandemic, wearing leggings and comfortable clothing would never be allowed in the workplace but things have truly changed and there is a bigger acceptance of comfortability in the workplace.
Regardless of those companies which still do require the traditional suit and tie look, a lot of corporate companies have shifted to a more comfortable and relaxed attire. For a company like Lululemon Athletica, this is amazing news. A new accepting society means that consumers will purchase a lot more Lululemon clothing for their everyday looks.
According to IBES data from Refinitiv, Lululemon forecast revenue between $7.49 billion and $7.62 billion for 2022. Essentially, a company like Lululemon has experienced a unique and once-in-a-lifetime experience that has changed the industry of their clothing once and for all. Situations like this are extremely interesting to understand for both fashion and business because it has a great impact on both industries. As mentioned previously, after the pandemic fashion had its own evolution and its own changes. Brands dealt with those changes and began to implement or develop new business plans that would better suit their circumstances.
Contact Daibelis at daibelis.acevedo@student.shu.edu