Published: 2023-06-22 ǀ Updated: 2023-07-05
Company History
Lululemon Athletica
Study the financial data for Lululemon Athletica.
Lululemon Athletica has been the epitome of trendy sportswear for more than 20 years and has a loyal fan base worldwide - not least because its products are of high quality and durable. Founder Chip Wilson, on the other hand, has repeatedly caused controversy with his public statements, but this has not diminished the company's success. The growth rates are enormous, and lululemon athletica has long since set its sights on competing with industry giants like Under Armour and Nike..
Founded | 1998 |
Founder | Chip Wilson |
Headquarters | Vancouver, British Columbia, Canada |
Key people |
Calvin McDonald (CEO) Glenn Murphy (Chairman) Meghan Frank (CFO) Kristin Brady (CPO) Celeste Burgoyne (EPP, Americas) |
Products | Sportswear and accessories |
Areas |
Lululemon Athletica OQOQO Ivivva Athletica |
Brands | Lab |
Website | lululemon.com |
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1998: Foundation of the company in Vancouver
Eccentric businessman Chip Wilson, who has made a name for himself in the press with questionable statements, founds a company in Vancouver to produce technical yoga sportswear for men and women. After the first designs focus on women's yogawear, the designs are expanded in the following years to include accessories, outerwear and a separate men's line.
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2000: Opening of the first store
Initially, Wilson ran the company as a design studio during the day and a yoga studio at night. This year, however, the founder is opening his first brick-and-mortar store on West 4th Avenue in Vancouver's Kitsilano neighbourhood. The goal is to create a place that not only sells athletic apparel, but also serves as a community gathering place. The neighborhood - once a hippie enclave like San Francisco's Haight Ashbury - is home to young, urban professionals and families with a taste for hip fashion and lifestyle accessories.
From here, the athleisure boom took off worldwide, creating an extraordinary cult following that swears by Lululemon products - so much so that thrift stores have sprung up to sell used Lululemon gear. -
2005: Search for investors
To raise capital and prepare for the IPO, Wilson brings investors on board. Among them is former Reebok executive Robert Meers.
The company trademarks its Luon fabric, made from nylon microfibers. Since then, the company has developed other patented fabrics in its own "Whitespace" research and development lab. -
2007: The company goes public
In 2007, the company goes public. The company raises $327.6 million through the sale of 18.2 million shares.
The New York Times reports that Lululemon made false claims about its Vitasea product, claiming that the clothing had "anti-inflammatory, antibacterial, moisturizing and detoxifying benefits" that were proven false. The Canadian regulator then orders the company to remove all health claims from its products. -
2008: Christine Day becomes Managing Director
Former Starbucks International co-president Christine Day is named chief executive officer.
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2010: Product recall
The company has to recall a number of reusable bags because their lead concentration is higher than average.
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2012: Patent infringement lawsuit
Lululemon is suing its supplier G-III Apparel Group for design patent infringement on yoga pants. The case raises eyebrows, in part because it is brought against a designer who sought to protect his intellectual property through patent rights. An out-of-court settlement is reached later that year.
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2013: Rapid corporate growth
Fortune magazine names Lululemon one of the fastest-growing companies for the third year in a row. That same year, the company recalls a collection of pants with an "unacceptable level of transparency. The recall affects about 17 percent of all women's pants sold. Shortly thereafter, Day resigns as CEO and Sheree Waterson steps down as chief product officer due to the financial and reputational damage, and Wilson steps down as chairman. Laurent Potdevin, former president of TOM Shoes, succeeds Day as CEO.
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2014: Market entry in Europe
Lululemon enters the European market with the announcement that it will open its first retail store as a flagship store in Covent Garden, London.
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2015: Wilson resigns from the board of directors
Wilson announces his resignation from the board and introduces Michael Casey, the board's former executive director, as his successor. After leaving the board, Wilson repeatedly uses his own website, chipwilson.com, to criticize Lululemon. The founder's book "The Story of Lululemon" also contains controversial statements.
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2016: Expansion to Japan
In the same year, the company expands into Japan, where it now operates several stores, primarily in Tokyo.
The company launches the "Here to Be" sponsorship program - an application program aimed at "community-led nonprofit organizations around the world that serve the collective well-being of people and planet. -
2017: New in the range: shoes
The company expands its range to include shoes.
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2018: Potdevin's resignation
Laurent Potdevin resigns as CEO and from the company's Board of Directors. Lululemon justifies this step with several cases of misconduct.
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2019: Investment in the start-up "Mirror
Forbes magazine attributes the company's continued success to Lululemon's consistent refusal to carry its products in department stores. It says this has contributed significantly to customer loyalty and allows the company to maintain control over pricing. The company also promotes this through global brand ambassadors who conduct workshops or other events online or in person.
Lululemon is investing in fitness startup Mirror, which has developed an interactive mirror with a camera and microphone for home workouts. The collaboration is expected to result in new features for the mirror, among other things. Lululemon Athletica, a luxury streetwear brand, will be launched in select stores, adding another product category to Lululemon's offerings.
Lululemon Athletica now has more than 460 of its own stores worldwide (6 in Germany) and also successfully sells its products online. Lululemon Athletica's product line includes athletic shirts, shorts and pants, as well as lifestyle apparel and yoga accessories. -
2020: Buyout of Mirror
Lululemon announces the acquisition of Mirror for $500 million. The company also capitalizes on the Covid 19 pandemic fitness trend of people exercising at home rather than in a gym.
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2021: Controversy over internal campaign
After the death of George Floyd, a company director allegedly forced his employees to engage in an "All Lives Matter" campaign, apologized to his 200 employees, and was forced to leave the company.
Sales for this fiscal year are approximately $4.4 billion. -
2022: Losses at Mirror
Lululemon announces a year-end after-tax write-down of $442.7 million related to its acquisition of Mirror. In an open letter, 1,698 yoga instructors and their students urge the company to switch to renewable energy by 2030. About half of the company's energy needs come from coal, they said.
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2023: Growth continues
In its 25th year, the company continues to grow with approximately 34,000 employees and 655 stores worldwide.