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LULU: Growth in ‘stealth’ discounts uncovers inflection

   22 May 2024

For years when  revenue from Lululemon was growing 25-30% our systems tracked no growth in email campaigns.  Recently as consumer preferences have shifted away from tight yoga pants and growth has slowed, we have captured a rise in our significant discount index.  This has been driven by ‘stealth’ campaigns  unseen by the Street as they have been emailed just to specific cohorts like “25% off for the military” , or “first responders get 25% off up to 15 items”.

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