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Lululemon faces pressure as China’s yoga apparel market slows
Lululemon’s same-store sales growth at sampled Chinese malls fell 4.0% year on year in May, after declines in April and the first quarter.
China’s yoga apparel market is facing intensifying competition and slowing growth as sluggish domestic consumption encourages middle class shoppers to diversify activities, according to analysts cited by SCMP Economy.
The outlet pointed to data from Shanghai-based consulting firm Meritco Services showing Lululemon’s same-store sales growth at sampled Chinese shopping malls fell 4.0% year on year in May. The decline was 3.0% year on year in April and 6.0% in the first quarter.
SCMP Economy also reported that Sammi Xu, Deutsche Bank’s head of China consumer discretionary research, said competition in the yoga apparel segment has intensified, as Lululemon continues to feel sales pressure in China, the world’s second-largest consumer market.