No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Abstract
The wider embracement of a healthy lifestyle and the rise in athleisure, a combination of sports and leisure wear, have boosted the growth in the athleisure apparel industry. As one of the most popular companies in this industry, Lululemon, a Canadian sportswear company specialising in women’s yoga apparel that was officially founded in 1998, has attracted investors’ attention since 2017, when the stock price began to surge. However, from the beginning of 2024, Lululemon’s stock price has kept dropping from its peak at $509 per share in the last eight months. Thus, this paper aims to critically assess Lululemon’s performance in the past three years and provide suggestions for investors. Two key goals are pursued: first, strategically positioning Lululemon with SWOT analysis within the industry, and second, evaluating Lululemon’s performance using financial ratios. The literature review is the main method used for both strategic and financial analysis. Financial analysis results have shown that Lululemon is gradually recovering from the hit of the pandemic, with improved profitability, consistent growth in liquidity and a reduction in leverage risk over the past three years. In conclusion, Lululemon should be careful of the possible threats concluded above and use its strength to reinforce its advantages in this industry.
ResearchGate has not been able to resolve any citations for this publication.
With the development of the economy and the advent of the post-pandemic era, people tend to choose healthier lifestyles. Lululemon has won the global sportswear market rapidly. It built excellent product power and brand power. Lululemon profound insight into market development trends and consumer needs then expand its products and services constantly. To stand out from many brands with excellent marketing models. However, there are also some problems like the relatively weak supply chain and potential users losing. Lululemon needs to improve in maintaining its own development and market competitiveness, to better conform to the trend of globalization. Therefore, this research adopts literature review and case analysis methods. Simultaneously, through the study of brand empowerment and consumer psychology. Under the theoretical frameworks of STP, SWOT, and 4P to analyze the reasons for Lululemon has successes in a short time. Meanwhile, this research also gives suggestions on Lululemon's existing challenges in order to increase the brand’s anti-risk ability and sustainable development. Emerging brands can draw valuable insights from this research.
The main purpose of this study is to determine, forecast and evaluate the best of economic conditions and company’s performance in the future. The other purpose of this study is to analyze the financial statement and than give information for financial managers to make through decisions about their business. The financial statement applies tools, analytical techniques and required methods for business analysis. It is a diagnostic tool for evaluating financing activities, investment activities and operational activities as well as an assessment tool for management decisions and other business decisions. The analysis of financial statements, respectively the analysis of the financial reports are used by managers, shareholders, investors and all other interested parties regarding the company's state. Managers use financial reports to see the situation in which the company stands and then provide information to shareholders, to see how reasonable are the investments made in the company. To potential investors, the analysis of the financial statements of the company is very important, because, first they want to know the actual state of the company and then decide whether to invest or not.
- P Jones
- V Ratten
- T Hayduk
- Sport
Jones P., Ratten V., Hayduk, T. Sport, fitness, and lifestyle
entrepreneurship. Int Entrep Manag J, 2020, 16: 783-793.
The Rise of Athleisure and Its Impact on lululemon
- S Smith
- M Ownby
- Y Kim
Smith S., Ownby M., Kim, Y. The Rise of Athleisure and
Its Impact on lululemon. International Textile and Apparel
Association Annual Conference Proceedings, 2018, 75(1).
Kellogg School of Management Cases
- A M Tybout
- Lululemon Athletica
Tybout AM. Lululemon Athletica. Kellogg School of
Management Cases, 2017.
SWOT analysis: A theoretical review
- E Gurl
Gurl E. SWOT analysis: A theoretical review. 23rd
International Conference on Knowledge-Based and Intelligent
Information & Engineering Systems, 2017.
The largest athletic apparel, accessories and footwear multinational companies: economic characteristics, internationalisation
- M Jaworek
- W Karaszewski
Jaworek M., Karaszewski W. The largest athletic apparel,
accessories and footwear multinational companies: economic
characteristics, internationalisation. Journal of Physical
Education and Sport, 2020, 20: 3053-3062.
- H Hiatt
Hiatt H. Lululemon Athletica Inc. Backhaul Strategic Audit,
2023.
Ratio Analysis' an Accounting Technique of Analysis and Interpretation of Financial Statements
- I Allad
- D Maisuria
Allad, I., Maisuria, D. 'Ratio Analysis' an Accounting
Technique of Analysis and Interpretation of Financial
Statements. International Journal of Research in Humanities &
Social Sciences, 2015, 3(2): 50-54.
Interpretation of Financial Statements
- H Wen
- T Zhu
Wen H, Zhu T. Interpretation of Financial Statements[C]//
Proceedings of the 2019 4th International Social Sciences and
Education Conference (ISSEC 2019). 2019: 532-536.