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New Age News Lululemon Might Just Emerge a Winner in a Post-Coronavirus World — Here’s Why
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Lululemon Might Just Emerge a Winner in a Post-Coronavirus World — Here’s Why

rida Jun 18, 2020
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Almost all businesses are suffering in one way or another amidst the coronavirus pandemic. And the trendy athleisure wear brand, Lululemon is one of them.

But when the dust has finally settled, and things return to normal once again, Lululemon might just emerge as an unexpected winner.

Bounce Back Potential

Andrey_Popov/Shutterstock: The recent sales can be attributed to people buying more comfortable clothes as they spend more time at home

Let’s first look at where the company is today.

Although it has recorded increased sales since the quarantine began months ago, Lululemon’s first-quarter earnings show an overall decline of about 17%. Still, financial analysts remain optimistic that the company will survive the pandemic and come out even stronger than before.

Analyst Randal Konik particularly noted how Lululemon was already a winner before coming into the pandemic and has the potential to bounce back again. He also banked on the fact that the company has recently achieved its highest quarterly market share gain in years.

Boom Anticipation

Africa Studio/Shutterstock: Almost three-quarters of American dieters say they want to lose weight to be healthier, according to the Calorie Control Council

Analysts like ‘Sweet Equity’ author Jason Kelly are anticipating that the current global health crisis would soon turn into a fitness and wellness boom as people put more focus on their personal health.

Industry investors also seem to have similar sentiments. Private equity firm L Catterton’s Marc Magliacano observed the relation between obesity and COVID-19 infections, concluding that this would cause the public to reevaluate their approach to fitness.

L Catterton has investments in fitness concepts like the exercise equipment maker Peloton and the luxury fitness brand Equinox.

According to the World Obesity Foundation, being obese or overly overweight seem to worsen the effect of COVID-19 to infected individuals. Unfortunately, a sizable portion of the population of developed countries like the United States has a BMI of over 25.

Lifestyle Shift

Jacob Lund/Shutterstock: Remember to observe proper social distancing guidelines while you work out outside

As you can expect, the anticipated fitness boom will significantly benefit companies like Lululemon and other similar athletic wear brands. They may reap gains even before the coronavirus has been adequately dealt with.

Analyst Matt Powell said that people now realize the incentive of exercising at home or even outside during the lockdown. That said, the same group is more likely to purchase more sports or workout gear.

Another incentive to exercising is the finding that being physically active helps prevent acute respiratory distress syndrome (ARDS), a deadly symptom of COVID-19.

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