Retailers have definitely been taking advantage. Lululemon recently reported year over year 20% quarterly revenue growth, helped by a 5% increase in comparable sales in the third quarter. The company, which retails the majority of its pants for $95 a pop, has been able to sustain its lofty 53% margins despite increasing competition. (Despite its sales success, Lululemon missed its earnings target and has taken a one-week 15.8% haircut in share price.)
Let us now take a look at the relative interest for the keyword "Lululemon" on Google Trends.
Above we see a fairly similar picture to the first. In December, Google is predicting all-time high levels of relative interest for the company.
Some of that may be negative attention. In a November Bloomberg News interview, the (now-ex) CEO Chip Wilson responded to claims that new batches of yoga pants were poor quality or overly sheer by claiming that "frankly, some women's bodies just don't actually work for" the Lululemon pants. Wilson may have put his foot firmly in his mouth -- and lost his job over it -- but his company has grown quite a bit. It seems Lululemon has been able to hold onto and grow its customer base in the face of rising competition and bad press. Despite PR blunders, it looks like demand for the company's products will be at highs this holiday season.
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