From an analysis of 3,800 Lululemon SKUs on its e-commerce website, Credit Suisse found that the retailer’s full-priced sell-through and in-stock positions have improved since January.
Women’s online apparel offerings are up nearly 20% to 3,008 since the beginning of the year, and up 30% year-on-year. Men’s apparel online offerings are up 10% to 860 since January and up 70% year-on-year.
Meanwhile, online full-price apparel stock rates are up to 80% from the beginning of January’s 75%. Men’s online full price apparel in-stock rates increased to 87% from 77% over the same period, and women’s in-stock rates climbed to 79% from 75%.
The level of online promotional activity has fallen slightly, the researchers say, with average discounted merchandise of 2.6% (97.4% full-price selling) compared to 4.1% (95.9% full price) at the beginning of January.
Lululemon has been hurt by complaints about the quality of its products, and was last year forced to remove a line of black Luon trousers from its stores after the fabric was found to be see-through.
“With Lululemon’s recent challenges both supply chain and demand related, we are encouraged that the former looks to be moderating, and believe there could be some margin and comp relief heading into the second half,” analysts Christian Buss and Phan Le said in a note. “However, until we see signs that underlying demand challenges have been resolved we believe caution remains in order with respect to shares.