This just in…Yoga-inspired clothing is extremely profitable! According to the latest announcement from Lululemon HQ, about $133 million worth in revenue profitable…in one quarter! Lulusquad just ended the first quarter of their fiscal year and much to the goal-setters’ delight, take home profits have managed to triple from a measly $6 mil this time last year to $19.6 million. That’s like 1,055,556 yoga classes, the really expensive $18 kind! (we did the math) How did they rake in so much? Is it more yogis? yoga moms? More camel toe? Head money counter Christine Day explains the ridiculousness:
1. Risk in stock!
“We believe we took the right amount of inventory risk to drive sales and used our rapid-response strategies to respond to incremental sales opportunities,” Day said.
Rabid lululemmings couldn’t get their sweaty paws on stretchy pants fast enough.
1a. Catering to skinny people!
“What we’ve really seen by the addition of the running line is that its really shifted our guest size profile down to the smaller sizes because we’re attracting a more athletic, fit guest, which is perfectly in line with our target and we’ve now adjusted a lot of our buys,” CEO Christine Day said on a conference call with investors Thursday.
(Fit people) x (exercising more) = $$
2. Internets! Not blatantly noted by lady Day, but opening an online store surely made a difference for all those millions of poor souls who live like hours from a Lululemon retail store.
With things going the way they are, Lulu lollies are on track for projected year revenues of between $620 million and $635 million. That’s like 6,888,888 yoga mats, the expensive Manduka kind! Oh and they’ll also be opening 30 new showrooms and 15 new stores this year too.
“As a growth company we will continue to make strategic investments to protect our iconic items such as our hoodie while scaling our infrastructure and people capacity,” Day said.
WTF. Executive-speak really drives us bonkers. In other words, our pals Chip and the lulus will be down-dogging into a big pile of money! Bless their hearts.
Earlier…In Response To Camel Toe, Or 10 Things We Learned About Yoga Crotch Advertising
Lululemon Goes for Gold, Poaches Olympic Spirit With “Cheer”
“Guests”?!!!!! What, are they running a hotel or something? *eyeroll*
Everything in their inventory is smaller than it was two years ago. And less attractive too. If you find something you like there, buy it in bulk because chances are they will never carry it again. They have no concept of “staples” where shirts are concerned.
I stopped shopping there a while back. I frequent dance shops – where things are half the price and just as nice, and I have found much cuter wear at Old Navy and Target.
so they are no different from any other clothes company who believes thick girls don’t exist? does anyone out there NOT like that attitude and if not, why are y’all still running there to buy your yoga clothes?
that is, you can still fit into them.
When I’m wrong, man am I wrong. Here I thought the Great Recession and continuing 10% unemployment would devestate yoga studios and high-end clothing stores, mat producers and high-priced classes ($18 ?? That’s the old expensive. There is a place here charging way more than that.) would all bite the dust. Instead the opposite happened as you illustrated. But then I thought the internet would just be a passing fad…:(
Yuppie Yoga Lives!!!
personally I want to know where all these yoga people with money are….I have all these ideas for yoga retreats and people tell me, “I would go, BUT….” and it’s all about the money.
sorry, but even in this economy there is always SOMEONE with disposable income!
who’s going to all these yoga retreats all over the world that I see advertised all over the place taught by people you’ve never heard of?
LuluLiars, liars pants on fires. They told me they couldn’t FIT my fattie plus sized clothes in their store. See?
We are glad to hear that you appreciate yoga as much as we do! Currently our size range is 4-12 with a few items in sizes 2 and 14 for women and, S-XL with a few items in size XXL for men. lululemon athletica’s business model focuses on smaller retail stores which in turn limits the size range we can offer within each style and colour. Having said this, we are a company built on feedback from valued guests like yourself. I have sent your request to our design team for future consideration.
But Lady Day says they are going for the tinier crowd. I just don’t see why they wouldn’t want to exploit the share of the market that is 14+ the same way they do the size 12- market. WHY WON’T YOU EXPLOIT ME, LULU? WHY?
They expect us plus sized (actually I am a size 12) to do kriyas and lose weight that way. My body won’t let me pretend what used to be callled neurasthenia. Wishing they would all get off their high horse …
Lululemmings!!! That’s a new favorite. <3