Lululemon vows a ‘reset’ after disappointing earnings

Lululemon is undertaking what its CEO calls a “reset” of its U.S. operations after a challenging second quarter. The popular apparel retailer said revenue rose only 1% while comparable sales declined 1%, though international sales were up 17%. CEO Calvin McDonald said the company made missteps in its product assortment, adding that “we have relied on the same product playbook across certain categories for too long.” The Vancouver, B.C.-based chain, with 770 stores globally, will more aggressively introduce new styles starting next spring. “We’ve become too predictable within our casual offerings and (have) missed opportunities to create new trends,” McDonald said. Tariffs also contributed to higher inventory costs.