Lululemon's Reset: What the Guidance Cut, New CEO, and Overflowing Markdowns Mean for Shoppers
Lululemon cut its outlook again, comps fell 9 percent, and 'We Made Too Much' is overflowing. Here is what to buy, what to wait on, and how to shop the brand's turnaround year.
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Lululemon had a bad week, and it is about to be a good season for anyone who buys Lululemon. On September 3 the company reported second-quarter comparable sales down 9 percent, cut its full-year revenue outlook for the second time this year to about $10.35 billion, and saw its shares fall roughly a fifth. Its new chief executive, Heidi O'Neill, a former Nike executive, had started two days earlier. Analysts used the phrase "identity crisis". Store expansion has been pulled back. And the "We Made Too Much" clearance section, according to the deal sites that track it daily, is the fullest it has been in years, with fall pieces already starting around $14.
None of that changes how good an Align legging feels. It does change how you should buy one. This is a shopper's guide to Lululemon's turnaround year: what the numbers mean for prices, which pieces to grab now, what to wait on, and how to use Amazon's official Lululemon store sensibly. For the head-to-head on the fabrics themselves, read our Alo vs Lululemon comparison.
What Actually Happened
Three things, and they compound.
Demand shifted. The company told investors that customers are moving away from form-fitting leggings toward looser, "away-from-body" pants. Lululemon has that range, but its inventory and its identity are still legging-first. We cover the trend itself in the loose-fit shift.
Competition arrived. Alo took the studio-to-street crown, Vuori took the men's casual customer, and Amazon brands took the price-sensitive one with dupes that are now genuinely good. Our Lululemon dupes guide is proof of the last point.
Inventory piled up. When demand slows and the range is broad, markdowns follow. That is the "We Made Too Much" overflow, and it is the part that matters to you.
What This Means for Prices
Expect three things this fall. First, deeper and more frequent markdowns on the website, especially in seasonal colours and in the categories the company over-bought: leggings, bras, and lightweight layers. Second, the core styles will not be discounted in core colours; Align in black will be $98 in December, because it always is. Third, a new CEO usually means a range edit within two to three seasons, which is when discontinued lines go to clearance in bulk.
The practical rule: buy core pieces in core colours whenever you need them, and buy everything else on sale.
| Piece | Buy now at full price? | Where it discounts | When |
|---|---|---|---|
| Align legging, black/navy | Yes if you need it | Rarely | Only in colour markdowns |
| Align in seasonal colours | No | We Made Too Much | Now and rolling |
| Wunder Train | No | We Made Too Much (colours) | Now |
| Scuba hoodie | No | We Made Too Much | Late fall |
| Softstreme / Groove flare | No | We Made Too Much as range rebalances | This fall |
| Energy / Flow Y bras | No | We Made Too Much | Frequently |
| Men's ABC / Commission pants | Core colours yes | Site sale | Holiday |
The Pieces to Grab
Lululemon Align — the exception to the wait rule
The Align legging is the softest legging on the market and the one piece Lululemon will keep making no matter what the range edit looks like. If you need a yoga legging today, buy it in black at full price and do not feel bad. If you can wait, watch the markdown section for last season's colours, which are the same pant.
Lululemon Wunder Train — buy it in a markdown colour
The Wunder Train is the best technical training tight from either Lululemon or Alo, and it lands in clearance constantly because the company makes it in a dozen colours a season. The fabric and fit never change. Buy whatever colour is $59.
Lululemon Energy Bra — patience pays
The Energy Bra is a workhorse medium-support bra and a permanent resident of the sale section. Third-party Amazon pricing runs above the site; use the site for this one.
Men's ABC Jogger — the men's bet
The ABC Jogger is exactly the "away-from-body" pant the company is pivoting to on the men's side. It is a core style; buy it in navy or black when the holiday sale comes.
Using Lululemon's Amazon Store Properly
Lululemon sells through an official Amazon store, which is where our links point. Understand what it is for. Prices match the Lululemon website; you will not find a secret discount. What you get is Prime shipping, Amazon's returns, and the ability to add a pair to the same cart as your mat and blocks. What you do not get is the "We Made Too Much" section, which lives on lululemon.com only.
Beware third-party sellers on Amazon listing Lululemon above retail; the listing should say "Visit the lululemon Store". If it does not, buy from the site.
What the New CEO Changes
Heidi O'Neill ran Nike's consumer and product organisation before this, and the read from analysts is a "multi-front battle": fix the product cadence, tighten the range, and repair North America, where sales stalled before she arrived. For shoppers the likely consequences are fewer colours per style, a clearer loose-fit range, and one or two seasons of heavy clearance while the old inventory clears. If you have been waiting for Lululemon to be cheaper, the next six months are your window.
Should You Switch Brands?
Not on the basis of a bad quarter. Align and Wunder Train are still the best at what they do. What has changed is the reason to pay full price: the brand no longer has the pull that made $98 feel automatic, and the alternatives have caught up in the places that matter. Our take on the strongest of them is in the Alo Yoga edit, and the budget end is in Lululemon dupes on Amazon.
Frequently Asked Questions
Is Lululemon going out of business?
No. It cut its outlook to about $10.35 billion in revenue; this is a slowdown at a very large, profitable company, not a collapse. The consequence for shoppers is discounts, not disappearance.
When is the best time to buy Lululemon this year?
Now for seasonal colours in the markdown section, and the holiday sale for core pieces. Expect clearance to stay deep through the range reset.
Are Lululemon Amazon prices lower?
No. The official store matches the website. The value is shipping and returns, not price.
Will Align be discontinued?
There is no sign of that. It is the brand's signature product and the one style it would protect through any range edit.
What is "We Made Too Much"?
Lululemon's permanent clearance section on its website, restocked weekly. It is currently the deepest it has been in years because of the inventory the company over-ordered.
The Bottom Line
Buy Align in black if you need a yoga legging today; it is worth full price and it will not go on sale in that colour. Buy Wunder Train, bras, hoodies, and the new loose pants only from the markdown section, where a turnaround year is about to put most of the range. And treat Lululemon's Amazon store as a convenience, not a discount.
A bad quarter for the company is the best buying season the brand has had in years. Use it.
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