Is luxury sports apparel entering an era of failure?
HOKA and on the cloud — Two sneaker brands with cult consumer followings — The activewear market’s leading contenders are seeing sales slump.
Some places have their shutters pressed.
Lululemon Q4 Report revealed Stagnant sales In the Americas, growth was only 9%, significantly lower than the previous year, despite steady success during the COVID-19 pandemic. Related supply chain issues.Previously held shares in a major apparel company Made competitors compete for moneyresulting in a 16% plunge.
On a call with a revenue analyst, CNBCCEO Calvin MacDonald acknowledged that the company was “overcoming a slow start to the year in this market,” attributing it to “changes in U.S. consumer behavior.”
Meanwhile, Nike warned: Lower revenue potential And last month, the company shed some legacy styles and experienced its own share price decline.
“One of the things that both Lululemon and Nike have enjoyed in recent years is premium prices for premium products, but that seems questionable at this point,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. ” he said. He told Reuters he had acquired a stake in Nike.
However, the decline in sales is not limited to just a few companies.
Premier sports brands are facing hardship across the board. puma He predicted a slow start to the year amid a “tough market.” under armor There has been a decline in revenue, adidas reported its first annual deficit in 30 years.
Even Allbirds is a once-beloved, smart shoe company that focuses on comfort in its shoes. president — I encountered a performance pitfall. Company founder Joey Zwillinger announced last month. The company announced that former COO Joe Bernacchio will succeed him as CEO.
In March, athleisure retailer Outdoor Voices closed 16 stores as it moved entirely online. new york times report. The 10-year-old brand’s valuation fell by $60 million from 2018 to 2020, and senior executives left the company.
At the time, founder Ty Haney, who had stepped down as CEO but remained on the board, said: the cut Last year, she publicly lamented on Instagram that the brand had lost its way, saying she felt “sad” for it.
Now, the industry’s long-time frontrunners are competing for market share with exciting upstarts like Vuori. A young, hot brand worth $4 billion as of 2021. after that, Kardashian-Jenner-backed labelAlo Yoga has built an empire that caters to the Erewhon-loving, aesthetic-minded Gen Z consumer.
The company is I took a spin in the future metaverseis envisioning a growing digital presence rather than traditional brick-and-mortar stores, said Danny Harris, the company’s co-founder and CEO. wall street journal.
“I really think Aro is like Tesla and the others are like Ford, Chrysler and General Motors,” he said.
According to the newspaper, Alo is building more than just a brand, advertising its physical storefronts as “sanctuaries,” complete with fresh matcha tea and fitness classes. We’re selling a complete lifestyle, and people are buying. In 2022, the company reportedly had sales of $1 billion.
“It certainly seems cooler and more relevant than Lululemon,” author Anna Andjelic told the Journal. “Why do I think that? I don’t know. When branding works, when people can’t explain why one thing looks cooler than another, that’s exactly what you want.” .”
To compete with sexy, up-and-coming brands, innovation has become a priority for traditional brands that may fall behind.
lululemon, According to fashion businessThey write that it appears to have grown too quickly, faced the challenge of “thinking about new ways to grow,” and lost momentum after years of strong performance with the rise of athleisure. street style standard Post-pandemic. But the retailer is working on sustainable clothing made from recycled materials to offset what it calls an “innovation problem.”
Meanwhile, Nike announced it would cut back on its signature styles in order to focus on fresh, next-level performance products. According to Business of Fashion magazine, CEO John Donahoe used the hot word “innovation” 20 times during the company’s earnings call.
“It’s not just about products or items; it’s about building a robust pipeline of innovation,” Donahoe said.
