Lululemon Same-Store Sales in China Fell 4 Percent in May

Lululemon same-store sales at sampled Chinese shopping malls fell 4 percent year on year in May, according to data from Shanghai-based consulting firm Meritco Services reported by South China Morning Post. The decline followed a 3 percent drop in April and a 6 percent fall in the first quarter.

South China Morning Post reported that Texas Attorney General Ken Paxton opened an investigation in April into whether Lululemon used harmful chemicals in its apparel.

Sammi Xu, Deutsche Bank’s head of China consumer discretionary research, said competition in the yoga apparel segment has intensified. Xu added that product materials and designs are no longer perceived as highly differentiated by consumers. Xu stated that emerging sports categories such as outdoor activities, Hyrox and tennis are increasingly attracting middle-class attention.