Lululemon faces declining same-store sales in China as middle-class consumers shift their interest toward other sports categories.
Key facts
- •Lululemon's same-store sales growth in sampled Chinese malls fell 4% in May.
- •The brand recorded a 3% decline in April and a 6% drop in the first quarter.
- •Deutsche Bank analyst Sammi Xu noted that yoga apparel products are increasingly seen as lacking differentiation.
- •Middle-class Chinese consumers are shifting their focus to outdoor activities, tennis, and Hyrox.
- •An investigation by Texas Attorney General Ken Paxton into potential harmful chemicals in Lululemon products sparked consumer discussion in April.
China's yoga apparel market is experiencing a slowdown due to intense competition and sluggish domestic consumption. Canadian athletic brand Lululemon is seeing continued sales pressure in the country, with data indicating a decline in same-store sales growth at sampled Chinese shopping malls.
By the numbers
Sales performance and market trends
According to Shanghai-based consulting firm Meritco Services, Lululemon's same-store sales growth at sampled Chinese malls fell by 4% year-on-year in May. This follows a 3% decline in April and a 6% drop during the first quarter of the year. Analysts note that consumers no longer view yoga apparel materials and designs as highly differentiated. Instead, middle-class shoppers are increasingly diversifying their interests toward other activities, including outdoor sports, tennis, and Hyrox.
External pressures
In addition to market competition, the brand faced public scrutiny in April. Discussions emerged among Chinese consumers following an investigation launched by Texas Attorney General Ken Paxton into whether Lululemon utilized harmful chemicals in its products.
Timeline
- First quarterLululemon experienced a 6% decline in same-store sales growth at sampled Chinese malls.
- AprilLululemon saw a 3% decline in same-store sales growth and faced consumer discussions regarding a chemical investigation.
- MayLululemon's same-store sales growth in sampled Chinese malls dropped by 4%.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
