Mul
dulhemon ((Dulu)) who is famous for its high-end athletic wear, ended 2024 on a note in question when it started to be confronted with a surprising shift in customer behavior, and the CEO sounds an alarm on the source of the problem.
In the Lululemon winning report before 2024 of the fourth quarter before 2024, it revealed that although the net turnover increased by 13% during the holiday season, the comparable turnover in North and South America was compared to the same period in 2023.
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According to recent data from Placer.ai, the Lululemon shopping traffic has only risen by 2.4% on an annual basis during the fourth quarter of 2024. This is weaker than the increase of around 8.2% in the foot traffic that was confronted with in the previous quarter.
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During a profit call on 27 March, Lululemon CEO Calvin McDonald warned that the company continues to see a weakening of consumer demand, despite recent efforts to attract more customers to stores.
“We started this year with various fascinating new product launches, but we also believe that the dynamic macroom environment has contributed to a more cautious consumer,” said McDonald.
He said that many of his customers sharpen their expenses because of “economic and political uncertainty”, which contributes to reduced foot traffic in stores.
“Based on a survey that we conducted earlier this month in combination with Ipsos, consumers spend less because of more concerns about inflation and the economy,” said McDonald. “This manifests itself in a quarter 1 in the US in the US in the US, which we also experience in our company.”
Lululemon’s clothing is often sold at premium prices, with many items such as hoodies, leggings and bodysuits, which sell for more than $ 100. It is therefore no surprise that American consumers may cut high-end ActiveWear out of their budgets.
Many consumers throughout the country have bought more and more second -hand clothing while fighting the inflation and higher costs of living.
In 2024 the American second -hand clothing market grew with 14%, the strongest annual growth since 2021.
Related: Puma announces a hard decision in the midst of falling sales
More consumers are more interested in second -hand clothing, especially after President Donald Trump has enforced 20% rates for all goods imported from China and 25% on all goods imported from Mexico and Canada earlier this month.
