Lululemon, no longer just for slim, captures new customers

Bloomberg

Lululemon Athletica Inc — whose founder once body-shamed women on live television — is finding that offering larger sizes can pay off.
Sales of women’s garments rose 22% last quarter, reaching pre-pandemic growth levels, the company said on a call
with investors after reporting
third-quarter results that beat estimates. Executives didn’t specifically attribute the surge to the more inclusive sizing it just added to shelves, but analysts say the ability to pick up new customers in new body shapes is playing a major role.
“No other high-end brand has offerings that can be worn by so many,” Susquehanna Financial Group analyst Sam Poser wrote in a note. “Lululemon continues to attract more customers to the brand, retain its existing customers, and take market share during the pandemic.”
The company — which recently began selling women’s clothes as large as size 20 — started discussing internally the need to reshape sizing two years ago, right after Chief Executive Officer Calvin McDonald took the helm. It didn’t take long for management to conclude that the exclusive sizing the business retained for decades was hurting business. That marked a major shift from 2013, when company founder Chip Wilson infamously said his yoga pants weren’t for everyone.
“It wasn’t the brand we wanted to be,” McDonald
said in an interview with Bloomberg News this fall when asked about the limited sizing. “It wasn’t a justified position under any circumstances.”
The CEO said the range was so narrow that many professional athletes weren’t even able to wear Lululemon’s leggings. The larger-sized products only hit store shelves this year because it took time to develop new silhouettes, he said, adding that the company should have made the change sooner.
The retailer began using plus-size models to promote its pants. Ads for Mirror, the in-home fitness startup it acquired in June for $500 million, also feature a variety of body types.
The wider assortment of sizing comes during an already big year for sportswear companies, who’ve benefited from a boom in comfy clothes as office workers stay home due to the pandemic. Lululemon’s shares are up about 50% this year, more than three times the gain in the S&P 500.
Public outcry against Wilson and his views on women’s bodies began in 2013, when he went into detail on Bloomberg TV about women whose thighs rub together. Shoppers were livid and a month later, Wilson stepped down as chairman amid the backlash. He left the board entirely in 2015 but remains a top shareholder.