Lululemon Athletica
Lululemon athletica inc., commonly known as lululemon (/ˌluːluˈlɛmən/ loo-loo-LEM-ən; styled in all lowercase[2]), is a Canadian multinational athletic apparel retailer headquartered in British Columbia and incorporated in Delaware, United States.[4] It was founded in 1998 as a retailer of yoga pants and other yoga wear, and has expanded to also sell athletic wear, lifestyle apparel, accessories, and personal care products. The company has 711 stores internationally and sells online.
Company type
- Nasdaq: LULU
- Nasdaq-100 component
- S&P 500 component
Clothing
Retail
1998
Vancouver, British Columbia, Canada[1]
711 (January 2024)[2]
Worldwide
- Calvin McDonald (CEO)
- Meghan Frank (CFO)
- Sun Choe (CPO)
- Celeste Burgoyne (EVP, Americas)
Lab
US$2.13 billion (2023)[2]
US$1.55 billion (2023)[2]
US$7.09 billion (2023)[2]
US$4.23 billion (2023)[2]
Chip Wilson (8.4%)[3]
c. 38,000 (January 2024)[2]
- Lululemon Athletica
- OQOQO
- Ivivva Athletica
History[edit]
Lululemon was founded in 1998 by Chip Wilson in Vancouver, with its first standalone store opening in November 2000.[5][6] In 1997, Wilson had been doing yoga and had an idea to make yoga apparel for women using a proprietary skintight fabric he developed that would make their butts look good.[7] Wilson created the name to have many 'L's so that it would sound western to Japanese buyers, who often have difficulty pronouncing the letter, and that the name otherwise "means nothing". He later remarked that he found it "funny to watch [Japanese speakers] try and say it".[8]
The company made its initial public offering in July 2007, raising $327.6 million by selling 18.2 million shares.[9][10] Christine Day, a former co-president of Starbucks, assumed her role of as the company's chief executive officer in 2008.[9]
In 2013, the company made its third consecutive appearance on Fortune's Fastest-Growing Companies list.[9] In December 2013, founder Chip Wilson announced his resignation as chairman, and that the president of TOMS Shoes, Laurent Potdevin, would become CEO.[11]
In 2014, Lululemon opened its first store in Europe, a flagship shop in Covent Garden, London.[12] In February 2015, Wilson announced that he was resigning from the board,[13][14] and that Michael Casey, former lead director of the board, would replace him.[15] In 2018, Laurent Potdevin resigned as CEO and from the company's board due to misconduct related to a relationship he was having with a then-employee and later contractor.[16][17]
From its founding through 2015, Lululemon incorporated elements of Landmark Forum into its leadership and development training.[18] According to a company source, seventy per cent of managers are hired internally.[19] Store managers are responsible for their store's layout, color coordination, and community involvement.[19]
In 2019, Lululemon announced an investment in MIRROR, a home exercise startup that sells an interactive fitness mirror with a camera and speakers for at-home workouts. Capitalizing on a growing trend of people conducting virtual workouts at home instead of going to a gym due to the COVID-19 pandemic, MIRROR was formally acquired by Lululemon on June 29, 2020, for $500 million and was rebranded as lululemon Studio, which now offers thousands of online workout classes for its customers right at their fingertips.[20][21][22] The companies also planned to create new content for the device, starting with meditation classes.[23] Following the corporate purchase, the company eventually took a post-tax impairment charge of $442.7 million related to the acquisition at the end of the 2022 fiscal year.[24]
Products and services[edit]
Lululemon sells athletic apparel including sporting tops, sports jackets, hoodies, joggers, running shoes, underwear, and leggings including its signature proprietary yoga pants. These products differ in size and product variety. Some of the company's best known product line favorites include the High Rise Align Fit Mini flare leggings, dance pants, Hottie Hot shorts, scuba hoodies, and define jacket – a proprietary sports jacket that the company designed,[25][26] shorts, sweaters, jackets and undergarments,[6] as well as other fashion and hair accessory products including gloves, mittens, hats, bags, yoga mats, water bottles, and personal care products such as deodorant and dry shampoo.[27] Lululemon trademarked its original fabric, Luon, which included a higher-than-average amount of nylon microfiber in 2005.[6] Since then, Lululemon has produced several different types of fabrics, including compression and moisture-wicking designs.[6] The company is primarily known for their proprietary technical luon and nulu material that was used to make their famed flared boot-cut style yoga pants and other sportswear apparel, which first made the Lululemon brand popular during the mid to late 2000s.
In order to remain competitive and devise new product lines that can be sold on the commercial sportswear market, Lululemon maintains a research and development lab, "Whitespace", within its headquarters. It has around 50 employees including scientists and physiologists as part of its research and development personnel.[6][28]
In 2019, the company launched a luxury streetwear brand called Lab in a few of its stores.[29] In the same year, the company announced plans to double its men's clothing business in the next five years beyond its women's athletic apparel and accessory business, competing against other well-known athletic sportswear brands such as Nike and Under Armour.[30]
