Latest news with #Konik
Straits Times
18-07-2025
- Business
- Straits Times
Lululemon's best-selling black leggings now pile up at outlet stores
Find out what's new on ST website and app. Lululemon shares had declined 41 per cent in 2025 through July 16's close. NEW YORK – Lululemon Athletica is facing slowing sales, fewer store visitors and waning demand for its iconic black leggings as the yogawear retailer tries to pull itself out of a rough patch. Lululemon's core black leggings, which are vital products that rarely are discounted, are piling up at outlet stores, according to Randal Konik, an analyst at Jefferies. That's an alarming issue for Lululemon, he added, showing erosion in core demand for the brand's clothes. 'We've witnessed signals of a brand in decline and see risks to earnings ahead,' Mr Konik said in a note to clients on July 17. The analyst, a long-time critic of the company's strategy, has had an underperform rating on Lululemon's stock since 2022. Lululemon shares had declined 41 per cent in 2025 through July 16's close. Chief executive officer Calvin McDonald is trying to revive sales at Lululemon as the company faces rising competition from rivals such as Alo Yoga and Vuori. Lululemon has issued disappointing results in two straight quarters and trimmed its outlook for the full year. The CEO's efforts to double sales from 2021 to 2026 have hit several snags. Executives have said that profitability has been hurt by new US tariffs and warned investors that US consumers are cutting back spending. In June, Lululemon cut 150 corporate employees after a review of its organisational structure. Lululemon's observed sales in the US fell 4.2 per cent in June, according to Bloomberg Second Measure, which tracks anonymous debit and credit transactions. That's the biggest drop since November. Top stories Swipe. Select. Stay informed. World Trump diagnosed with vein condition causing leg swelling: White House World Trump was diagnosed with chronic venous insufficiency. What is it? Singapore 5 foreigners charged over scheme to deliberately get arrested in S'pore to sell sex drugs here Asia Appointment of Malaysia's new chief justice eases controversy over vacant top judge seats for now Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore Singapore SPCA appoints Walter Leong as new executive director World US strikes destroyed only one of three Iranian nuclear sites, says new report Business Granddaughter of late Indonesian tycoon pays $25 million for Singapore bungalow An adjusted version of Bloomberg Second Measure's observed sales metric shows that the retailer's US sales are on track to decline 2.8 per cent in the quarter that runs through July. Analysts on average expect a gain of 1.9 per cent. Meanwhile, foot traffic to Lululemon's US stores fell more than 8 per cent in June, according to which measures visits through mobile device data. 'Designs still look disjointed, inventory growth is accelerating and sales cracks are expanding,' Mr Konik said in his note. BLOOMBERG
Business Times
17-07-2025
- Business
- Business Times
Lululemon's best-selling black leggings pile up at outlet stores
[NEW YORK] Lululemon Athletica is facing slowing sales, fewer store visitors and waning demand for its iconic black leggings as the yogawear retailer tries to pull itself out of a rough patch. Lululemon's core black leggings, which are vital products that rarely are discounted, are piling up at outlet stores, according to Randal Konik, an analyst at Jefferies. That's an alarming issue for Lululemon, he added, showing erosion in core demand for the brand's clothes. 'We have witnessed signals of a brand in decline and see risks to earnings ahead,' Konik said in a note to clients on Thursday (Jul 16). The analyst, a long-time critic of the company's strategy, has had an underperform rating on Lululemon's stock since 2022. Lululemon shares had declined 41 per cent this year to Wednesday's close. A representative for Lululemon did not immediately respond to a request for comment. Chief executive officer Calvin McDonald is trying to revive sales at Lululemon as the company faces rising competition from rivals such as Alo Yoga and Vuori. Lululemon has issued disappointing results in two straight quarters and trimmed its outlook for the full year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The CEO's efforts to double sales from 2021 to 2026 have hit several snags. Executives have said that profitability has been hurt by new US tariffs and warned investors that US consumers are cutting back spending. In June, Lululemon cut 150 corporate employees after a review of its organisational structure. Lululemon's observed sales in the US fell 4.2 per cent in June, according to Bloomberg Second Measure, which tracks anonymous debit and credit transactions. That's the biggest drop since November. An adjusted version of Bloomberg Second Measure's observed sales metric shows that the retailer's US sales are on track to decline 2.8 per cent in the quarter that runs to July. Analysts on average expect a gain of 1.9 per cent. Meanwhile, foot traffic to Lululemon's US stores fell more than 8 per cent in June, according to which measures visits through mobile device data. 'Designs still look disjointed, inventory growth is accelerating and sales cracks are expanding,' Konik said in his note. BLOOMBERG
New York Post
11-07-2025
- Business
- New York Post
Shoppers are souring on Lululemon — and chain is getting squeezed by rivals
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.'
Yahoo
29-05-2025
- Business
- Yahoo
Dick's CEO Lauren Hobart Says Nike Is a ‘Very Important' Strategic Partner Following Q1 Results
As Dick's Sporting Goods wraps up a strong first quarter, analysts are eager to hear more about the retailer's position on Nike Inc. as the company brings Foot Locker into the fold later this year. According to Randal Konik, equity analyst at Jefferies, Nike stands to benefit from Dick's momentum, as the Swoosh focuses even more on its wholesale distribution. More from WWD 'Ensuring a Safe and Secure Shopping Environment Is Key for Retailers,' NRF Says Jalen Brunson Will Get His First Nike Kobe Sneaker Release Later This Year The Best Nike Sneakers Releasing in June 'Dick's management emphasized that its relationship with Nike remains 'strategic,' expressing continued satisfaction with the partnership,' Konik wrote in a research note on Wednesday. 'This signals frequent collaboration and alignment between the two companies, reinforcing Nike's importance within Dick's merchandising strategy.' Konik added that the sporting goods retailer 'remains bullish' on Nike's innovation pipeline, particularly in running and lifestyle categories. Dick's cited strength in Nike's running pipeline, where the Pegasus Premium and Vomero 18 sneaker styles have been selling out online. This momentum supports Nike's product-led recovery strategy, the analyst wrote. This echoes the sentiment shared by Dick's Sporting Goods president and chief executive officer Lauren Hobart, who affirmed on Wednesday's first-quarter earnings call with analysts that Nike is 'a very important' strategic partner for the company. 'Nike continues to perform really, really well for us,' Hobart said. 'As we look to the future, we've heard about some distribution changes. [But] one thing that you can say about Nike time in, and time out, is that they are very good at segmenting their products. So, we expect minimal overlap with some of the new distribution. There's a lot of great stuff going on.' Looking ahead, footwear remains a 'very strong business' for Dick's Sporting Goods, according to its CEO. Konik added that this is a 'positive signal 'for Nike, which is a key brand in Dick's footwear assortment. Moreover, a better-run Foot Locker under Dick's leadership would be a net benefit for Nike by reinforcing its distribution strategy and solidifying its position in athletic retail, Konik said in a note following the announcement earlier this month that Dick's would scoop up Foot Locker in a $2.4 billion deal. Konik said earlier this month that as Nike CEO Elliott Hill strengthens an already robust relationship with Dick's, the consolidation of the two retailers 'could enhance Nike's retail presence and brand consistency.' He noted that Nike leads footwear sales at Dick's, a key growth category that accounts for 28 percent of the sporting goods retailer's business, while the Swoosh represents half of Foot Locker's sales, 'underscoring the strategic importance of both channels to Nike's wholesale strategy.' This comes as Dick's Sporting Goods saw net sales increase 5.2 percent to $3.18 billion in the first quarter of 2025, up from $3.02 billion in the same year-ago period. Net income in the quarter ended May 3 was down 4 percent to $264 million, or $3.24 per diluted share, compared with $275 million, or $3.30 per diluted share, a year earlier. Excluding one-time items related to its acquisition of Foot Locker, Dick's posted earnings per share of $3.37. Looking ahead, the company expects net sales for the full fiscal year 2025 to be between $13.6 billion and $13.9 billion, with earnings per diluted share in the range of $13.80 to $14.40. For now, Dick's outlook doesn't include acquisition-related costs or results from the Foot Locker merger, but does take into account any current tariff-related expenses. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
09-05-2025
- Business
- CNBC
Buy this media stock that's 'positioned for sustained success,' says Jefferies
Jefferies has nothing but glowing remarks for TKO Holdings following rosy first-quarter results at the owner of Ultimate Fighting Championship and World Wrestling Entertainment . "TKO delivered another strong Q, outperforming expectations on top- and bottom-line. Its robust business model and diversified revenue streams are bolstered by strategic acquisitions and $40M in cost synergies," analyst Randall Konik wrote on Friday. TKO also raised its full-year revenue and adjusted EBITDA outlook, he said. "Given mgmt raising F'25 guidance and a > 60% [free cash flow] conversion, TKO is positioned for sustained success," Konik added. Konik reiterated a buy rating on the stock, alongside an unchanged $220 per share price target. Jefferies had already raised the price target, which now implies about 30% upside from Thursday's $168.96 close, from $200 in March. TKO YTD mountain TKO Holdings stock in 2025. The analyst highlighted TKO's expansive portfolio of media properties, adding that he expects WWE future expansion with Netflix and forthcoming boxing promotions to serve as growth catalysts. Recent record breaking events for both the WWE and UFC are indicative of more successful live events in the pipeline, he said. TKO also boasts a diversified business model, Konik added, which could be a key driver to raise revenue. "TKO's diversified revenue streams and strategic integrations showcase its robust" business model, the analyst said. "The company's success was evident in UFC 1Q results, with a 15% revenue increase to $360M and a 66% surge in live events and hospitality revenue, driven by high site fees and ticket sales from events like the Fight Night in Saudi Arabia." Konik also said the upcoming renegotiation of the UFC's media rights is a "major opportunity" for the company, which could see TKO "potentially enhance monetization while balancing reach and brand growth in a strong market for sports rights." The UFC currently has a partnership with ESPN that's set to run out at the end of 2025. Shares have advanced almost 13% so far in 2025.
