Lululemon Embraces AI to Accelerate Design and Go-to-Market Processes

Lululemon Athletica aims to leverage artificial intelligence (AI) and technology to enhance its ability to develop new products and bring them to market.

While reporting that the athletic apparel, footwear and accessories company is “not happy with the current results in the U.S. business,” Lululemon CEO Calvin McDonald said Thursday (Sept. 4) during an earnings call that it is making changes to turn things around.

McDonald said these efforts will be aided by Lululemon’s first chief AI and technology officer, Raju Das. The company announced in an Aug. 26 press release that Das would begin that role Tuesday (Sept. 2), would report to McDonald and would join the senior leadership team.

“This is a new role at Lululemon and represents and elevated mandate to enable AI and technology to help expedite our product innovation process, improve our agility and speed to market, and increase personalization across our guest experience,” McDonald said during the call.

During the quarter ended Aug. 3, Lululemon saw its Americas comparable sales decrease 4% year over year while its international comparable sales increased 15%. Overall, the firm’s comparable sales increased 1% year over year, according to a Tuesday earnings release.

McDonald attributed the decline in the Americas business to the company letting its product life cycles run too long, becoming too predictable and missing opportunities to create new trends. He added this happened at a time when there has been an industrywide decline in the market for premium athletic wear in the U.S.

“Consumers are spending less on apparel overall, spending less on performance activewear, and are being more selective in their purchases, seeking out truly new styles,” McDonald said during the call. “This makes it even more important that we meet and exceed the expectations of our guests.”

In addition, the company’s go-to-market process failed in some cases to meet customer demand for new styles introduced by the company, leaving some customers disappointed, McDonald said.

Moving ahead, the company plans to increase the share of new styles among its overall assortment from the current 23% to 35% by next spring, McDonald said. It is also working to accelerate its design capabilities and its go-to-market process.

Referring to the company’s new chief AI and technology officer, McDonald said: “I’m excited Ranju has joined us, and I look forward to partnering with him as he and our technology teams implement and accelerate these strategies.”