Athleisure Brands Like Lululemon Losing Out During the Pandemic, But There’s a Silver Lining

All businesses have been affected by the Covid-19 pandemic, even athleisure companies like Lululemon. Most of us may find this surprising since most people are stuck in their houses, ordering comfortable and workout clothes as they try to boost their immune system, which will be useful in fighting the coronavirus.

Lululemon recently released its first-quarter earnings and shockingly, sales declined by 17 percent – this is despite an online growth. This only means that even brands selling athleisure clothes aren’t exempted from the drastic effect of the coronavirus.

Even though there’s a significant decrease in its sales, analysts are positive that it will rise e again once the pandemic is over because there will be a wellness and fitness boom, the experts predict. Businesses can very well capitalize on this upcoming craze.

Goran Bogicevic/Shutterstock — There may be an uptick in the demand for workout clothes after the pandemic

Randal Konik of Jeffries believes that Lululemon will come out stronger after this global health threat since it is foreseen that consumers will gravitate toward fitness. For short-term, people have been spending tons of money on workout apparel while on lockdown but post-pandemic, most will be more health-conscious and wellness-obsessed than before, which is why it will be a win-win situation for the brand.

It is worth noting that this is a health crisis, which means fitness plays a huge role in this situation, ‘Sweat Equity’ author Jason Kelly pointed out. L Catterton managing partner Marc Magliacano reiterated this sentiment and underlined how most Covid-19-related health issues are a ‘function of obesity,’ which is why people will rethink their choices when it comes to wellness.

MIA Studio/Shutterstock — People will be more focused on their health after the pandemic

The disease has focused more on how the obese and unhealthy are more susceptible to catching the coronavirus, which is why a renewed interest in exercises and workouts is expected to happen. Again, the winner in this equation will be sports brands and athleisure companies, Matt Powell of NPD explained.

Moreover, the new strain of the coronavirus has become an incentive for people to be or stay active and to adhere to healthier habits, the NPD analyst said.

How the Coronavirus Started

It was just in December when China reported to the World Health Organization that there’s a virus wreaking havoc in Wuhan, which is believed to be the ground zero of the outbreak. It is said that this started from a seafood market where sorts of illegally traded animals were sold.

SamaraHeisz5/Shutterstock — The coronavirus originated in Wuhan, China

The first humans who had caught the virus were believed to have had contact with the infected animals in the market, which means that although zoonotic in nature, it is transmissible to humans. Even though the market was disinfected, the coronavirus had already spread not just across China but across the globe.