Lululemon Plunges 20%! A pair of yoga pants costs over 1,000 yuan—are consumers still buying it?
Lululemon's stock price once plunged about 20%, hitting an 8-year low. Revenue in the second quarter fell 4% year over year, comparable sales dropped 9%, and even more strikingly, core yoga pants sales declined by about 20%. The company also lowered its full-year performance guidance again.
To put it bluntly, Lululemon used to sell not just yoga pants, but a “premium athletic lifestyle.” A pair of pants could easily cost over 1,000 yuan, and consumers were willing to pay for the brand premium.
But now the question is: when consumers start thinking, “Do I really need to spend over 1,000 yuan on a pair of pants?”, the brand’s most important moat begins to weaken.
On top of that, competing brands like Alo and Vuori keep grabbing market share, and Lululemon’s share in the athleisure market has already declined significantly.
Shibei’s view:
What fell this time was not just a pair of yoga pants, but the consumer logic that “high price = high value,” which is now being reexamined.
In one sentence: the pants are still the same pants, but consumers' wallets are no longer so easy to fool.
#lululemon因指引疲软跌20% #ZEC续刷历史新高 $BTC $ZEC $ETH
Lululemon's stock price once plunged about 20%, hitting an 8-year low. Revenue in the second quarter fell 4% year over year, comparable sales dropped 9%, and even more strikingly, core yoga pants sales declined by about 20%. The company also lowered its full-year performance guidance again.
To put it bluntly, Lululemon used to sell not just yoga pants, but a “premium athletic lifestyle.” A pair of pants could easily cost over 1,000 yuan, and consumers were willing to pay for the brand premium.
But now the question is: when consumers start thinking, “Do I really need to spend over 1,000 yuan on a pair of pants?”, the brand’s most important moat begins to weaken.
On top of that, competing brands like Alo and Vuori keep grabbing market share, and Lululemon’s share in the athleisure market has already declined significantly.
Shibei’s view:
What fell this time was not just a pair of yoga pants, but the consumer logic that “high price = high value,” which is now being reexamined.
In one sentence: the pants are still the same pants, but consumers' wallets are no longer so easy to fool.
#lululemon因指引疲软跌20% #ZEC续刷历史新高 $BTC $ZEC $ETH
