Lululemon, the popular Canadian sportswear brand, is set to experience a fall in sales for the first time since the COVID-19 pandemic, according to a prediction by analyst BTIG.
The prediction comes as consumers in the UK and globally face a cost-of-living crisis, with rising costs and stagnant wages forcing many to cut back on discretionary spending.
BTIG analyst Camilo Lyon cited rising costs, including material costs and supply chain disruption, as well as consumer spending cuts, as the main drivers behind the predicted decline in sales.
The news is likely to impact investors, who have seen Lululemon's share price rise significantly in recent years, with some investors seeing the brand as a safe haven for growth.
However, the prediction may also impact consumers who rely on Lululemon for high-quality, fashionable sportswear. The brand is known for its premium products, with prices ranging from £40 for a basic t-shirt to over £100 for high-end yoga pants.
Consumer rights under UK law protect consumers who purchase faulty or unsatisfactory products, with the Consumer Rights Act 2015 outlining the rights to a refund, repair, or replacement.