Lululemon Fast-Tracks New Styles After Leggings Review

By Savyata Mishra
(Reuters) – Lululemon Athletica announced it will expedite the launch of popular styles following negative reviews of its “Breezethrough” leggings, leading to their removal from shelves.

The Vancouver-based company’s $98 leggings were withdrawn in July due to shopper critiques of the unflattering V-shaped back seam and discomfort from the waistband’s seam.

CEO Calvin McDonald, during a post-earnings call, stated, “For 2025, we are fast-tracking still new styles within performance, shorts, tops, and track suits,” which include apparel for racket sports and office wear. He expressed optimism about seeing benefits from these strategies in the upcoming quarter.

Lululemon (NASDAQ:LULU) shares fluctuated after the company lowered its 2024 sales and profit forecasts. They rose 4% in premarket trading on Friday.

The company reported a rare quarterly sales miss, attributing disappointment in its women’s business in North America to delays in releasing spring styles and limited color options.

Second-quarter comparable sales increased by 2%, falling short of the expected 6.05%, largely due to a 3% drop in sales in the Americas.

Jessica Ramirez, an analyst with Jane Hali & Associates, acknowledged Lululemon’s proactive approach to addressing missteps. She noted they have better addressed availability of smaller sizes and now assure investors of more innovations.

Last quarter, McDonald highlighted a sluggish start to the year, citing missed opportunities in women’s offerings and bags. On Thursday, he emphasized they were taking active measures to correct this.

According to McDonald, “When looking at women’s, we did not maximize the business in the U.S. due to several missed opportunities, particularly a narrow color palette and core assortment in leggings.”

This incident follows a decade ago when Lululemon faced backlash over see-through pants. The “Breezethrough” leggings initiative was a limited inventory test and did not significantly affect quarterly sales, according to the company.

“We took the right step of pausing sales and look forward to reintroducing the fabric in the future,” said McDonald.

Analysts believe that while recent issues are concerning, Lululemon’s diversified women’s product lineup and successful men’s apparel expansion will mitigate negative impacts. Raymond James analyst Rick Patel noted that while pulling the “Breezethrough” leggings might not materially affect results, it increases pressure to innovate further and attract customers.