Athleisure darling Lululemon just saw some tough love from investors and customers this week.
On Thursday, shares of the popular activewear brand took their worst hit in four years after the company said it would pause sales of the “Breezethrough” product line. The leggings, introduced earlier this month, were quickly criticized by some shoppers for an unflattering design, poor fit, and other issues.
The pause in sales highlights Lululemon’s challenges with recent innovation, limited color palette, and execution, JPMorgan analyst Matthew R. Boss wrote in a note earlier this week. He lowered his earnings estimates for the year.
Shares slid over 9% on Thursday and ended the day at their lowest level since May 2020.
Fashion YouTuber and previous Lululemon shopper Alexandra Alvarez said in a video review last week that she struggled with the Breezethrough leggings’ fit and construction.
“For me personally, I don’t find it flattering and I don’t like it,” she said. “Honestly, they kind of missed the mark with this,” she said, referring to the deep-V seam.
On Reddit’s 600,000-user Lululemon forum, the leggings received mixed reviews. Some shoppers called the back design a “whale tail.”
TikTok fitness and lifestyle influencer Kathryn Mueller had similar complaints about the V cut.
“I think this is a little bit too exaggerated. It’s going a little bit too high over the hips,” she said in a TikTok video review last week. “For $98, I’m not super impressed with these.”
Besides the design issues, some analysts said there are other problems facing the Vancouver-based company, including less appetite for activewear in general.
“After years of active/athleisure trends dominating consumer spend within apparel, consumers have swung back toward fashion apparel,” Citi analyst Paul Lejuez wrote in a note earlier this week, cutting his rating from buy to neutral.
Money “spent on apparel is not going toward leggings/workout wear,” Lejuez wrote.
Analyst Janine Stichter, who remains a Lululemon bull, said that the company has been executing poorly. Lululemon has received complaints about size unavailability and lack of color variation in the last few months.
“The consumer is there, they are willing to buy when the product is right, even at a high price,” said Stichter, an analyst at BTIG, on CNBC TV on Thursday. “But the company has to execute, and they’ve kind of been getting in their own way.”
Lululemon’s stock has slid over 50% year-to-date.
The company did not respond to a request for comment sent outside standard business hours.
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