Marketplace®

Daily business news and economic stories

Lululemon tries to juice up its product line

Lululemon tries to bounce back by making fancier clothes. Can sequins save its sales?

Lululemon Athletica, the retailer known for its line of comfy but pricey yoga and athletic apparel, is still working to regain its balance after some major PR stumbles over the past couple years. Its forthcoming earnings report, out Thursday, will give a snapshot of its current performance.

Lululemon’s reputation, sales and stock price suffered when it had to recall some yoga pants in 2013 for their unfortunate see-through quality. The company’s founder made matters worse when he suggested some women’s bodies weren’t right for the pants.

Now the company’s trying to bounce back by updating its product line with snazzy floral prints and even sequined pants. But sequins alone may not make Lululemon sparkle again.

“They’re going to take a lot more fashion risk. Whenever you have that much more variety you have more markdowns, misses,” says John Horan, publisher of Sporting Goods Intelligence.

The fancier stuff costs more to produce, according to Sam Poser, an equity analyst with Sterne Agee. And he doubts it will bring new customers in the door.

“They can fix the product but they can’t fix the mojo,” Poser says.

Poser says Lululemon needs to focus on its other former strong suit: great customer service.

Related Topics

Latest Episodes

View All Shows
  • Marketplace
    2 hours ago
    25:34
  • Make Me Smart
    7 hours ago
    15:36
  • Marketplace Morning Report
    10 hours ago
    6:39
  • Marketplace Tech
    15 hours ago
    7:09
  • Million Bazillion
    3 days ago
    28:24
  • How We Survive
    6 days ago
    25:04
  • This Is Uncomfortable
    6 days ago
    26:12
  • Financially Inclined
    3 months ago
    12:30
  • The Uncertain Hour
    4 months ago
    22:50
  • Corner Office from Marketplace
    5 years ago
    20:58