History of Lululemon Athletica in Timeline
Lululemon Athletica Inc., widely known as Lululemon, is a Canadian multinational retailer specializing in athletic apparel. Headquartered in British Columbia, Canada, and incorporated in Delaware, USA, the company was established in 1998. Initially a retailer of yoga pants and wear, Lululemon has broadened its product line to include athletic wear, lifestyle apparel, accessories, and personal care products. With a global presence of 711 stores and an online platform, the company caters to a wide customer base.
1997: Chip Wilson's Idea for Yoga Apparel
While practicing yoga in 1997, Chip Wilson got the idea to make yoga apparel for women using a new, form-fitting fabric.
1998: Lululemon Athletica Founded
Chip Wilson founded Lululemon Athletica in Vancouver in 1998. The company initially focused on selling yoga pants and other yoga wear.
1998: Chip Wilson's Inspiration for Lululemon
In 1998, Chip Wilson had the idea to create yoga apparel for women using a special fabric he developed. He wanted the fabric to flatter their figures.
November 2000: First Lululemon Store Opens
Lululemon opened its first standalone store in November 2000.
2004: Chip Wilson Mocks Japanese Pronunciation
In 2004, Chip Wilson made fun of the way Japanese people pronounce the company's name.
2005: Lululemon Trademarks Luon Fabric
Lululemon trademarked its original fabric, Luon, in 2005. Luon is known for its high nylon microfiber content.
July 2007: Lululemon Goes Public
Lululemon had its initial public offering (IPO) in July 2007, raising $327.6 million by selling 18.2 million shares.
November 2007: Lululemon's False Claims About Vitasea Clothing
The New York Times reported in November 2007 that Lululemon had made false claims about its Vitasea clothing line. The company had claimed that the seaweed-based fabric offered health benefits like anti-inflammatory and antibacterial properties, but lab tests couldn't confirm these claims. As a result, Lululemon was forced to remove all health-related claims from its seaweed-based products sold in Canada, following a demand from the Competition Bureau of Canada.
2008: Christine Day Becomes CEO
Christine Day, former co-president of Starbucks, became Lululemon's chief executive officer in 2008.
December 2010: Lululemon Recalls Reusable Bags Due to High Lead Levels
In December 2010, Lululemon issued a recall for some of its reusable bags made from polypropylene after reports emerged of high lead levels.
2012: Lululemon Sues Calvin Klein for Yoga Pant Design Patent Infringement
In an unusual case in 2012, Lululemon filed a lawsuit against Calvin Klein and its supplier, G-III Apparel Group, alleging infringement of three design patents related to yoga pants. This move was notable as it involved a designer seeking intellectual property protection for clothing designs through patent law. The lawsuit was eventually settled out of court.
December 2013: Chip Wilson Resigns, Laurent Potdevin Becomes CEO
Chip Wilson resigned as chairman of Lululemon in December 2013, and Laurent Potdevin, president of TOMS Shoes, took over as CEO.
2013: Chip Wilson Makes Controversial Remarks About Women's Bodies
Chip Wilson caused controversy in 2013 by stating that the company didn't make clothes for plus-size women due to cost concerns. He also blamed excessive pilling in Lululemon's clothing on customers' wearing habits and body shapes. In a Bloomberg TV interview that same year, he suggested that some women's bodies weren't right for the brand's clothes. These comments, labeled as "fat shaming" by Time magazine, reportedly contributed to his resignation as chairman.
2013: Customer Complaints Regarding Poor Quality and Durability of Lululemon Clothing Emerge
During 2013, Lululemon faced criticism and complaints from customers who experienced issues with the quality of their clothing. Some customers reported that the items were too sheer, developed holes easily, or fell apart after only a few uses.
2013: Lululemon Recalls See-Through Yoga Pants, Leading to Financial Loss and Executive Departures
In 2013, Lululemon faced a major setback when it had to recall a significant portion of its black yoga pants due to transparency issues. The recall, affecting about 17% of all women's pants sold, resulted in financial losses and damage to the brand's reputation. Consequently, the company's chief product officer and CEO were forced to step down.
2014: Lululemon Expands to Europe
Lululemon opened its first European store in 2014, a flagship location in London's Covent Garden.
February 2015: Chip Wilson Leaves Board, Michael Casey Steps In
In February 2015, Chip Wilson resigned from Lululemon's board, and former lead director Michael Casey replaced him.
2015: Lululemon's Use of Landmark Forum in Training
Until 2015, Lululemon incorporated elements of the Landmark Forum into its leadership and development training.
June 2016: Chip Wilson Criticizes Lululemon's Direction
In June 2016, after being denied the chance to speak at Lululemon's annual meetings, Chip Wilson published an open letter to shareholders, claiming the company had "lost its way" and was losing market share to competitors like Nike and Under Armour.
2018: Calvin McDonald Takes Helm as CEO
Calvin McDonald assumed the role of CEO for Lululemon Athletica in 2018.
2018: Laurent Potdevin Resigns Amidst Misconduct Allegations
Laurent Potdevin resigned from his position as CEO and from the board of Lululemon in 2018 due to misconduct allegations stemming from a relationship with an employee and later contractor.
2019: Lululemon Targets Male Customers and Embraces Guerilla Marketing
By 2019, Lululemon had grown by attracting more male customers, leading to adaptations in its products and marketing. The company planned to further increase brand awareness among men. Lululemon is known for using "holistic guerrilla marketing" to create a sense of community among its customers.
2019: Lululemon Invests in Home Fitness Startup MIRROR
In 2019, Lululemon announced its investment in MIRROR, a home exercise startup that offers interactive workout experiences through a camera and speakers embedded in a mirror.
2019: Lululemon Launches Lab and Expands Men's Business
Lululemon launched a luxury streetwear brand called Lab in a few of its stores in 2019. The company also announced plans to double its men's clothing business in the next five years, moving beyond its core market of women's athletic wear.
June 29, 2020: Lululemon Acquires MIRROR and Launches lululemon Studio
Lululemon formally acquired the home fitness startup MIRROR on June 29, 2020 for $500 million. MIRROR, which sells interactive fitness mirrors, was rebranded as lululemon Studio. The platform offers thousands of online workout classes, capitalizing on the growing trend of at-home workouts.
2021: Internal Conflict at Lululemon Over Proposed "All Lives Matter" Campaign
In 2021, an incident at Lululemon highlighted the company's internal struggles with social justice messaging. An unnamed director pushed for an "All Lives Matter" campaign on the website in response to the murder of George Floyd, facing pushback from employees. While instructed to create a mock-up with the controversial slogan, employees also designed a "Black Lives Matter" version, which was ultimately chosen. The director involved later apologized and left the company.
September 2022: Yoga Community Urges Lululemon to Transition to 100% Renewable Energy by 2030
In September 2022, over 1,600 yoga teachers and students, supported by advocacy groups Stand.earth and Actions Speaks Louder, wrote to Lululemon demanding a commitment to transition to 100% renewable energy by 2030. They raised concerns about the company's environmental impact, claiming that approximately half of its energy consumption originated from coal production.
2022: Lululemon Records Impairment Charge Related to MIRROR Acquisition
At the end of the 2022 fiscal year, Lululemon recorded a post-tax impairment charge of $442.7 million related to its acquisition of MIRROR.
May 2023: Lululemon Fires Employees Involved in Confrontation During Store Looting
In May 2023, Lululemon terminated the employment of two employees from a Georgia store who were involved in a confrontation with looters. While initial reports suggested they were fired for calling the police, the company clarified that the dismissal was due to their physical engagement with the looters. The employees had approached the individuals, with one recording the incident on her smartphone, and followed them out of the store towards the parking lot.
2024: Lululemon Acquires Mexican Franchise Operations
Lululemon agreed to acquire the operations and retail locations of its franchise partner in Mexico in 2024 for an undisclosed amount.
2030: Target Date for Lululemon's Transition to 100% Renewable Energy
2030 represents the target date set by advocacy groups for Lululemon to complete its transition to using 100% renewable energy sources, reflecting a growing demand for environmental responsibility within the company's stakeholders.