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Thursday, December 12, 2013

Lululemon Continues to Lose Money

Posted by on Thu, Dec 12, 2013 at 1:35 PM

No wonder Lululemon's asshole Ayn Rand-loving founder had to step down. Turns out, blaming the female body for the failings of poorly made clothing isn't a good strategy for a retailer. Quartz's John McDuling writes:

Lululemon posted its third-quarter earnings this morning and Wall Street isn’t impressed. Sales were up 20%, but that is the slowest growth since July 2009, and it’s only adding to concerns that the yoga-pants maker’s incredible run of growth, completely at odds with the woes most brick-and-mortar retailers have been experiencing in the last few years, could be behind it.

The company also cut its earning forecasts for next year, and its shares have tanked about 10% in early trading.

Quick! What would Ayn Rand do? Actually, she'd probably double down on her asshole comments. Never mind. Keep apologizing, I guess! Maybe that'll work.


Comments (20) RSS

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NotSean 1
Sales were only up 20%...
...doesn't sound all that bad to me.
Posted by NotSean on December 12, 2013 at 1:51 PM · Report this
Love how pointing out that some people can't wear some clothes is "blaming the female body".

Yeah it's a poor marketing strategy, but he's not lying.
Posted by Go Be Fat Someplace Else on December 12, 2013 at 1:52 PM · Report this
stirwise 3
Women are pretty accustomed to being told their flawed body is the reason the clothes don't look good, so I doubt that's the issue here. Maybe customers are just realizing that a) yoga pants aren't great everyday clothes and b) you can buy decent ones for less than $50, instead of spending the $100 or so Lululemon charges.
Posted by stirwise on December 12, 2013 at 1:59 PM · Report this
I think it's probably more that other companies are starting to catch on to the idea of nicer workout clothes, but they price them a bit lower than Lulu -- for example, Albion, Athleta, and Ellie all have styles that are essentially knockoffs of Lulu, but at a somewhat lower price point. When Lulu was the only source for luxury yoga gear, they made out -- but that's not the case anymore.
Posted by sara on December 12, 2013 at 2:03 PM · Report this
maxk 5
This headline is just stupid. Lululemon is not losing money. They are making money. Their sales growth rate has been flat the last 3 quarters, meaning they are making more money each quarter.
Posted by maxk on December 12, 2013 at 2:04 PM · Report this
Well, what she'd REALLY do is have a three-way with Alan Greenspan and her husband, Frank O'Connor - just, you know, to relieve some stress.
Posted by COMTE on December 12, 2013 at 2:16 PM · Report this
Cato the Younger Younger 7
She'd probably go down and cash her monthly Social Security check and then see the doctor that would be billed to Medicare.
Posted by Cato the Younger Younger on December 12, 2013 at 2:19 PM · Report this
Supreme Ruler Of The Universe 8

So, SLOG will never comment on a scene like this ever again:…

Posted by Supreme Ruler Of The Universe on December 12, 2013 at 2:24 PM · Report this
treacle 9
Don't you mean they are "Lu-losing-le-mon-ey"?

...never mind. I'll just get my coat.
Posted by treacle on December 12, 2013 at 3:21 PM · Report this
Paul, you must mean they are losing money by not making as much as they would had they avoided the quality control issues (see-through pants) and well-publicized public-relations problems (blaming the customer is never a good idea). So maybe their sales growth would have stayed closer to 50%? But your headline is misleading even if it is defensible.
Posted by David from Chicago on December 12, 2013 at 3:32 PM · Report this
Some Old Nobodaddy Logged In 11
1,5, et al... This is what you don't understand about modern corporate philosophy. Success in that world is not measured in profit or loss, but in how HUGE the profit is. Most everyone would be pleased as punch to have a 20% increase in their production/profit every quarter. But we're not talking about most everyone: we're talking about the people who make huge decisions which impact our lives. The people who buy politicians, who formulate our energy policy, our financial policy, our trade policy, our food policy.

For them, there is either incredible profits or you're a complete loser.
Posted by Some Old Nobodaddy Logged In on December 12, 2013 at 3:40 PM · Report this
The headline is precisely the opposite of true.
Posted by doceb on December 12, 2013 at 3:41 PM · Report this
rob! 13
@9: here's your hat, what's your hurry?
Posted by rob! on December 12, 2013 at 3:50 PM · Report this
keshmeshi 14
Twenty percent? I thought my company's 12 percent growth goal was unrealistic.
Posted by keshmeshi on December 12, 2013 at 4:57 PM · Report this
Oh ok fine then. Go buy cheaper clothes at Athleta (owned by Gap), where they don't do anything for the local community, or more responsibly source production. Lululemon actually means something as a brand, and I'm not talking about status from the logo-- when u buy those $100 pants u are supporting local yoga studios, for example. Ugh. Their founder may have said some dumb stuff but it's far outweighed by the positives of Lululemon. Look beyond the price tag. Lululemon is a shining example of what corporations SHOULD be like.
Posted by PistolAnnie on December 12, 2013 at 6:05 PM · Report this
What would Ayn Rand do? Continue to rot, hopefully.
Posted by mubhappy on December 12, 2013 at 7:16 PM · Report this
julie russell 17
My flawed body LOVES and lives in Lulu!
Posted by julie russell http:// on December 12, 2013 at 9:25 PM · Report this
Fat women put on clothes made for healthy women and then the clothes fail? GWUUUUHHHH???
Posted by Reader01 on December 12, 2013 at 10:30 PM · Report this
@15 The owner of the company values the "philosophy" of Ayn Rand.

As a participator in the free market, i've decided to spend my money elsewhere.
Posted by tigntink on December 13, 2013 at 9:41 AM · Report this
@19 and I'm sure all competitors are fabulous examples of giving companies that pay their workers a living wage and support local communities. Lululemon is extremely giving and caring. Where do you get your workout gear? Oh and btw valuing a philosophy is different than living it. For example I value Jesus' philosophy but I don't go around in sandals and give ALL my earnings to the poor. It's not all black and white
Posted by PistolAnnie on December 13, 2013 at 4:11 PM · Report this

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