From its chairman making controversial comments that implied some women's figures were to blame for pilling yoga pants to complaints its fabric was too sheer,lululemon sale has been trying to bounce back from badpublicity.
As Lululemon struggles with an image problem, other activewear makers have an lululemon outlet opportunity to win over new customers.
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As Lululemon struggles with an image problem, other activewear makers have an opportunity to win over new customers.
These missteps, combined with its ongoing search for a CEO, are lululemon pants ratcheting up the risk to Lululemon's business, according to Sam Poser, an analyst at Sterne Agee, who downgraded the retailer's shares Thursday to "underperform."
"The company culture and the leadership is as ... important [as] how good the lululemon yaga pants make a woman's derriere look," Poser said in a research note. "The six-month hunt for a new CEO is likely causing some internal issues. ... Also, we contend that finding a new CEO who will embrace and enhance the culture LULU embraces is like searching for a needle in haystack."
Lululemon declined a request to comment on recent events cheap lululemon and their potential to impact its business.
But analysts said the situation could leave the door wide open for lululemon competitors, who have been aggressively pumping up their activewear offerings and ramping up their businesses to seize market share from Lululemon.