Lululemon Needs To Make One Change To Massively Improve Business
This according to Brian Sozzi, chief equities strategist at Belus Capital, who says that Lululemon's biggest growth potential is in menswear.
The cult yoga brand has a highly successful men's line, but displays the clothing at the back of the store, Sozzi told Jeff Macke at Yahoo! Finance.
Macke also notes that Lululemon isn't doing enough for men:
"A visit to Lululemon.com reveals well made, bland product shown in uninspired settings on bored looking models," Macke writes. "Most men aren't even aware the company sells men's apparel."
Despite being a predominantly women's store, plenty of men visit Lululemon.
"While only about 15% of its sales are men's gear, male shoppers account for about 40% of sales," reports the Wall Street Journal, citing a Cowen & Co. research report. "Those men who appear to be shopping for women can probably be convinced to buy more for themselves as Lululemon rolls out new products."
Lululemon appears to be on the right track.
Outgoing CEO Christine Day announced earlier this year that Lululemon will open standalone men's stores by 2016.
But the brand is going to have to make some huge changes to accommodate men, Sozzi told Business Insider in June.
""As it stands now, most men wouldn't shop at Lululemon," Sozzi said. "It will take careful planning to pull off a successful launch."