Why the comfy days of athleisure could already be over

Women are losing interest in the gym-wear category

Sarah Jones
Thursday 08 December 2016 13:31 GMT
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It’s a trend that’s rocked the fashion world for years but it looks like ‘athleisure’ has finally become overstretched.

So much so, that two stock analysts told Business of Fashion that they have reduced their expectations for leading yoga-wear brand Lululemon over fears that consumers are rapidly losing interest in the category.

A brand that helped popularise ‘athleisure’ over the past decade, Lululemon has inspired women to take their stretchy leggings out of the gym and into everyday life but they’re facing relentless competition.

It seems like everyone has their own ‘athleisure’ line nowadays, heck even Beyonce has one, and Lululemon are drowning in this ocean of less-expensive gym-wear.

Accordingly, the brand has seen a 30 per cent drop in its stock and been left trading at 23 times expected earnings compared to its five-year average of 29, according to Thomson Reuters Datastream.

One expert claims that this comes in light of consumers shifting away from ‘athleisure’ and toward denim.

Mizuho Securities analyst Betty Chen, who recently cut her price target for Lululemon to $60 from $68, said women are favouring ripped and distressed jeans as well as “retro” athletic styles from competitors like Adidas and Puma.

“We see shoppers buying it and wearing it. You can also see a lot of it online through bloggers, and a lot of the young celebrities are wearing it,” Chen said.

Even on one of the busiest shopping days of the year, Black Friday, Lululemon struggled seeing healthy traffic but weak customer spending.

While this certainly isn’t going to put an immediate end to women wearing leggings outside the gym it demonstrates that ‘athleisure’ is lacking the fashion component that today’s consumer is seeking.

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