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Mar 8, 2022

Lululemon takes new step forward with women sneaker line debut

I'd rather be in Lululemon's shoes: Croxon on Peloton's boom and bust cycle

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Lululemon Athletica Inc. is stepping into the footwear game by debuting its first sneaker line, a move that will allow the yogawear maker to outfit customers from head to toe.

Their first shoe, a female-focused sneaker dubbed Blissfeel, was introduced during a media event in New York on Tuesday, and will be available in stores across North America, China and the U.K. on March 22.

“Footwear is the natural next step for us to expand and apply our long history of innovation in fit, feel and performance, and it represents an exciting moment for our brand,” said Lululemon Chief Executive Officer Calvin Macdonald in a release. “We are entering the footwear category the same way we built our apparel business — with products designed to solve unmet needs, made for women first.”

Three additional sneakers were revealed during the event — titled Chargefeel, Strongfeel and Restfeel — and will also be available in coming months. Special edition and seasonal collections are planned as well with a men’s sneaker line aimed for a 2023 launch, the company said in a release.

The timing of its women’s sneaker line announcement coincided with International Women’s Day, a strategic move one company executive said stays true to their brand.

“We intentionally started with women first because we saw an opportunity to solve for the fact that, more often than not, performance shoes are designed for men and then adapted for women,” said Sun Choe, Lululemon’s chief product officer. “That didn’t sit well with us. Innovating for women is in Lululemon’s DNA—now we’re bringing that same expertise to footwear, and women were part of this journey every step of the way.”

Lululemon’s entry into the footwear category comes amid a number of well-heeled competitors including Nike Inc. and Adidas AG. Along with incumbent competition, supply-chain bottlenecks and labour shortages have posed challenges as global demand for clothing that emphasizes comfort and functionality is on the rise.

The New York-based company first announced it would work on developing a shoe line in 2019, and had previously sold footwear exclusively through vendor partners such as shoemaker Athletic Propulsion Labs.

Jefferies LLP Analyst Randal Konik pointed out in a report to clients Tuesday that gross margins on footwear are “dilutive” and are lower than those of clothing apparel. “[Lululemon’s] entrance into the footwear category could create more pressure on gross margins due to mix shift and potential markdowns,” the report said.

Konik also flagged that the company’s shoe line launch could distract Lululemon’s management from its core business as it may have too many apparel categories to juggle.