Lululemon Athletica is shifting its focus to community events and new product releases to attract customers in a market where concerns about inflation and the economy are driving consumers to spend less. According to CEO Calvin McDonald, these trends have led to “cautious consumer” behavior across the industry, resulting in decreased traffic.
However, Lululemon has seen a positive response from customers who appreciate its new products, which include innovative fabrics, comfortable casual pants, and yoga gear that delivers softness and relaxation. The company’s events are designed to build loyalty among existing customers and attract new ones by engaging with guests directly through classes, launch parties, and exclusive experiences.
In terms of sales, Lululemon reported a 12% increase in store revenue, outpacing its digital revenue growth of 4%. The company added 56 net new stores last year, including some from the acquisition of Mexican operations. CFO Meghan Frank noted that the current tariffs on imports from China and Mexico have embedded a headwind of 20 basis points into their guidance.
Separately, TikTok’s future remains uncertain after the US Congress passed a law requiring its Chinese parent company to divest or face a ban. The deadline for this decision is April 5, but Vice President JD Vance has expressed confidence that a deal will be reached in time.
Meanwhile, artificial intelligence firm Perplexity has made its case for acquiring TikTok, citing concerns about algorithm manipulation and the need to liberate content feeds from foreign governments’ control. Research by PYMNTS Intelligence shows TikTok’s role as a driver of social commerce, with many retail shoppers influenced by written content on the platform.
Source: https://www.pymnts.com/earnings/2025/lululemon-offers-new-products-and-events-to-draw-cautious-consumer