Are Lululemon stores closing down? Nope, they’re not. Lululemon is actually doing really well. Let’s explore what’s happening with Lululemon’s stores and what it means for customers and the company itself.
Lululemon is growing and opening more stores around the world. Even though lots of other stores are having a hard time, Lululemon is still strong. They sell really good workout clothes for people who like to exercise, like yoga or running. They have stuff for everyone, and people really like their clothes.
Some stores that sell stuff online have also started opening physical stores. This can be a good idea because some things, like mattresses or workout gear, people want to try before buying. Even smaller things like underwear or glasses are better seen in person. Companies like Warby Parker and Third Love had to open real stores so people could check out their stuff.
Having stores can help these companies get repeat customers online. But, it’s expensive to rent stores in fancy malls. If they don’t sell enough stuff in those stores, they end up losing money. So, it’s tricky for online stores to figure out if having real stores is worth it. Sometimes, online brands that try having real stores end up closing them down.
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About Lululemon
Lululemon is a company that sells clothes for yoga and exercise. They’re known for promoting a healthy lifestyle rather than just selling clothes. This has worked well for them, and they can sell their clothes for higher prices. People even wear their clothes as fashion, not just for working out.
In 2022, their sales went up by 30% to over $8 billion, with most of the growth in North America and internationally. Even though some stores closed because of COVID-19 in 2020, they opened 81 new stores in 2022, including many outside of North America. Now, they have 655 stores worldwide.
Lululemon has had some ups and downs over the years. They’ve faced challenges, like having to recall some of their pants in 2013. But overall, they’ve been successful.
They sell a variety of clothes like pants, tops, and jackets, as well as accessories like bags and yoga mats. While they mostly target women, they also sell clothes for men and youth. They even had special stores just for men, although those closed in 2017 and 2019.
In 2022, Lululemon started a membership program and launched some new products like special fabric technology and shoes for women. They make money by selling their products in stores and online. They also sell to other businesses like gyms and yoga studios.
Lululemon doesn’t make its clothes. Instead, they work with a small group of suppliers in countries like Vietnam, Cambodia, and Sri Lanka to make their products.
How Many Lululemon Stores Are Left In The US?
In the US, there are about 450 Lululemon stores. California has the most, with 67 stores, which is about 15% of all the Lululemon stores in the country.
Texas has 36 stores, which is about 8% of all Lululemon stores. Florida comes next with 30 stores, making up about 7% of all Lululemon stores.
Who Are Lululemon’s Biggest Competitors?
Let’s check out some other brands like Lululemon! There are big ones like Nike and Adidas and newer ones like Outdoor Voices and Fabletics. Let’s check them out!
Nike is known everywhere for its sports gear. They’ve got everything from leggings to jackets, all designed to make you feel and perform your best. Nike’s shoes are famous too, especially the ones for running and training.
Adidas is another big name in sports. They’ve been around for a long time and are loved by athletes all over the world. Just like Lululemon, Adidas makes clothes and shoes for working out, and they’re known for their cool designs and comfy fits.
Now, let’s talk about some newer brands. Outdoor Voices is all about getting outside and having fun. They make clothes that are comfy and perfect for activities like walking, yoga, or playing sports. Plus, they care a lot about using eco-friendly materials.
Fabletics is another brand that’s getting popular fast. Started by actress Kate Hudson, they offer trendy and affordable activewear. They even have a special VIP program where you can get discounts on their clothes every month.
There’s also prAna, which focuses on making sustainable and eco-friendly clothing. They’ve got everything from yoga pants to jackets, and they’re known for being super comfy.
Vuori is a newer brand that’s gaining popularity. They make activewear that’s both stylish and functional, perfect for working out or just hanging out.
All of these brands offer something different, so no matter what you’re looking for, there’s sure to be something that fits your style and budget!
Why Are Some Clothing Brands Struggling to Compete with Lululemon?
Making clothes is tough because lots of brands want to be like Lululemon, a popular activewear company. But it’s not easy to copy their success. Imagine a restaurant trying to be as good as Chipotle but serving different food—it’s tricky!
Other brands saw that Lululemon sells their clothes for a lot of money and thought they could do the same. Some did okay, but many failed. Outdoor Voices tried to stand out by being more about enjoying the outdoors.
They said on their website that they want to get people moving and having fun outside. But even with that cool message, they’re closing down all their stores from March 17.
What Happened To Outdoor Voices Stores and Employees?
The stores of Outdoor Voices suddenly announced they were closing. Workers found out that they didn’t get any extra money when they left. Some stores didn’t even answer their phones. The stores are having a big sale before they shut down. Outdoor Voices will only sell stuff online now.
The people who work at the company were told about the closing on the phone on March 12. Most of the people who worked at the main office got laid off, and only a few will still have jobs.
The Outdoor Voices website is still working, but it doesn’t say anything about the stores closing down.
Why Should You Consider Lululemon?
Lululemon makes really good yoga clothes that are comfy and last long. They use fancy materials like polyester and nylon to make sure the clothes feel nice, last a while, and let your skin breathe.
Their clothes aren’t just comfy, they also look cool. Lululemon’s designers pay close attention to making stylish designs with lots of patterns. So, when people wear them, they feel good and stylish.
People love Lululemon not just for their clothes but also because of their logo and slogan “Sweat, Smile, Repeat.” It shows that they’re all about staying active and happy. Lululemon also does smart things to tell people about their clothes. They team up with yoga teachers and fitness stars, hold events, and use social media a lot.
Lululemon is super popular, according to a study by Genting Casino. They looked at how many times people searched for Lululemon and how many followers they had on social media. Turns out, Lululemon is at the top with a huge number of searches and followers. Other brands like Alo Yoga and Vuori are popular, too, but not as much as Lululemon.
In the past five years, Lululemon’s value has grown a lot, showing they’re doing really well. Nike and Puma also did okay, but Adidas had some trouble because of changing trends and the Covid-19 pandemic.
Is Lululemon’s Future Looking Bright for Investors?
Lululemon has big plans to make more money for its investors. In 2022, they made $6.3 billion. Now, they want to double that to $12.5 billion by 2026.
They also want to make more profit, not just more sales. They hope their earnings per share (EPS) will double, too. Right now, it’s $7.49, but they want to make it over $15 by 2026.
So far, things are going well. In 2022, their sales went up by 30%, and they expect another 18% growth in 2023.
They’re doing well in selling clothes to men, even though more women buy from them. Their men’s clothes sales went up by 15% in 2023.
They’re also selling more outside of the US. In 2022, their sales went up by 35% internationally, while in North America, they only went up by 29%. In the third quarter of 2023, international sales went up by 49%, while in North America, it was only 12%.
If they keep going like this, they’ll probably meet their goals by 2026.
As for how much their company might be worth in 2026, it’s hard to say for sure. But if we look at how much investors usually pay for their sales (P/S ratio), it could be around $75 billion. That’s more than what it’s worth now.
If you have Lululemon stock, it might be worth more in a few years. But don’t expect it to grow super fast. It’ll do better than the average stock. If you don’t have any yet, wait for a better time to buy.
The Wrap
In conclusion, even though Lululemon is doing well, we need to think about what might happen if they close some of their stores. Closing stores could help them run more smoothly and keep up with how people are shopping these days. However, Lululemon needs to make sure they stay strong online and keep customers interested. They can do this by making online shopping better and trying out new ways to tell people about their clothes. If they focus on what customers want and make some changes, Lululemon can still be a top choice for athletic clothes, even if they close some stores.
