Shoppers are souring on Lululemon — and chain is getting squeezed by rivals

New York Post

11-07-2025

Shoppers are souring on Lululemon — and the once-thriving yoga chain is meanwhile getting squeezed by new rivals.
The pricey retailer known for its $100 leggings has been discounting at 'alarming rates' — even as it has been losing customers to competitors, according to new research from investment bank Jefferies.
At one location ahead of the July 4 weekend, a slim-fit skirt was marked down to $49 from $78 while a pair of jogger pants were marked down to $89 from $128.
5 Lululemon was known for being stingy with discounted apparel, but that's changing now.
SOPA Images/LightRocket via Getty Images
A windproof golf vest was marked down to $79 from $128, according to a July 2 Jefferies report.
The discounting is striking for a retailer that traditionally sold most of its merchandise at full price, Craig Johnson, president of Customer Growth Partners told The Post.
'Historically 95% of their stuff was sold at full price, now they are lucky to get 75% at full price,' Johnson said.
Meanwhile, competitors Vuori and Alo Yoga are going for Lululemon's jugular – and have been gaining market share since February, according several recent Jefferies research reports.
'Alo and Vuori are coming after Lululemon,' Jefferies analyst Randal Konik told The Post.
The privately-held chains are muscling in on Lululemon's turf, opening stores across the street and next door in shopping malls and big cities. On Fifth Avenue in Manhattan, Lululemon's flagship faces an Alo store at the corner of West 48th Street.
Alo, founded in 2007 in Beverly Hills, has 99 stores in the US. San Diego-based Vuori has 93, according to their websites.
5 Alo opened a store across the street from Lululemon on the corner of W. 48th St. and Fifth Avenue.
NYPost/Lisa Fickenscher
Both ramped up their retail expansion over the past few years, according to Konik, and have leaned heavily into social media and influencers. Alo, for one, has bankrolled campaigns with Kendall Jenner, Hailey Bieber and Bella Hadid.
In response, a frantic Lululemon has made a few missteps, including introducing 'loud' colors and sweaters and jackets that customers don't typically associate with the athleisure brand, Konik says.
Bright red, yellow, blue, green and purple merchandise looks more like 'Sesame Street,' Konik laments, and is overwhelming the muted, soft pastels the Vancouver-based chain is known for.
'They are trying to extend the brand to non-athletic people, but these non-core products are on sale,' said Konik, who has maintained an 'underperform rating on Lululemon shares for the past two years.
5 The yoga-gear company has recently added bright red, green, purple and yellow apparel to its assortment.
Getty Images
Lululemon's stock price is down 38% this year, closing at $238 on July 10 and down 54% from its all time high of $516 in December 2023.
At the Lululemon store this week, there were four markdown racks on the third floor filled with bright green, pink, orange and neon yellow, leggings, shorts and jackets. Green leggings were $69, down from $98, and a pair of orange shorts were $49, down from $68. A white windbreaker was $129, marked down from $148.
The Alo store across the street had similarly priced items — but there were no sales racks to be found anywhere in the store.
Over the past several years, Lululemon has opened at least two dozen outlet stores up from just a handful in 2019, according to Johnson.
5 Lululemon is trying to attract non athletic customers, according to Jefferies analyst Randal Konik.
Bloomberg via Getty Images
'The bulk of their highest grossing stores are the outlet locations,' Johnson added.
Lululemon is also leaning into 'logomania,' slapping its name across sweatshirts, jackets and baseball caps – eclipsing its subtle 'Omega' logo that is on every piece of merchandise.
'There's no end to logomania,' Konik writes. Management 'is zeroing in on 'newness' as a panacea for their product struggles…however the outcome is a disjointed assortment that's failing.'
The company did not respond to requests for comment.
In June, it reported that revenues increased by 7% to $2.4 billion in the first quarter ended on May 4, but most of that growth was overseas. Comparable store sales in North America decreased by 2%, the company said.
5 Lululemon has recently added bright colored apparel to its assortment.
Bloomberg via Getty Images
In June, the company said it is laying off 150 corporate employees, according to a Retail Dive report.
It cut its profit forecast for the year in June, blaming outside factors.
'We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,' Lululemon said in a statement.
In July, it also sued Costco, accusing the massive discounter for ripping off its designs, selling hoodies and pants for $8 and $10 – compared to Lululemon's $118 and $128 price tag for similar products – that look too similar to high end retailer's products.
With 770 stores, Lululemon is still the number one chain among premium athleisure brands, including The Gap's Athleta chain – with 250 stores – and Free People Movement –with 68 stores.
'The brand is still strong and has loyal customers,' Johnson said. 'But they have had some chinks in their armor.'