Marina Strauss Retailing Reporter

Globe and Mail UpdatePublished on Thursday, Jun. 10, 2010 8:10AM EDTLast updated on Friday, Jun. 11, 2010 3:40PM EDT

Christine Day has discovered a new way of managing inventory at her Lululemon stores: social media.

Instant feedback on Facebook and Twitter is helping the chief executive officer of Lululemon Athletica Inc. (LLL-T43.101.002.38%) to figure out what items are hot with customers, and which ones are duds.

Comments through social media about the chain running out of women’s size 4s and 6s, for example, are helping her adjust her product purchasing to ensure she’s in stock of those sizes rather than forfeiting sales, as has happened in the past. Identifying the high-demand products to carry for her “guests,” as the company calls its customers, is crucial for the purveyor of premium athletic wear.

“We learn more about that on Facebook and through social media: what are the guests really screaming for and so we actually use [the feedback] to get a little bit more indication,” Christine Day said. The running line “really shifted our guest size profile down to the smaller sizes because we’re attracting a more athletic, fit guest which is perfectly in line with our target.”

The fast-growing Vancouver-based yoga wear retail phenomenon has wrestled with a problem that rivals can only envy: not being able to keep up with heavy demand for its $100 hoodies and yoga pants.

The immediate feedback of social media means the company doesn’t have to wait for customer data from the stores’ cash registers.

On Facebook alone, Lululemon has about 127,000 fans while it has more than 32,000 followers on Twitter. On Thursday, a Lululemon employee told one Twitter follower that its men’s shorts start at 32. “Great feedback! I’ll definitely let design know our guests would like smaller waist sizes for men.”

Another follower tweeted: “Any new men’s downdawg [sic] shorts coming out soon? i really liked the fit of the previous line, not the most recent.”

The social media feedback is feeding into Lululemon’s strong results. Its first-quarter profit more than tripled from a year earlier and handily beat analysts’ forecasts. Quarterly sales jumped 35 per cent at stores open a year or more, which is a key indicator of a retailer’s health. And the retailer raised its 2010 sales and profit outlook.

Lululemon “does a tremendous job of driving traffic to their website through social media outlets such as Facebook and Twitter,” analyst Jennifer Black at Jennifer Black & Associates in Lake Oswego, Ore. said. “Lululemon focuses on their guests and intently listens to their feedback, wants and desires.”

In addition, individual Lululemon stores often have their own Facebook pages for more local feedback and to let customers know about new products and events, she said.

The chain “continues to work on its stock-outs online and in stores,” Ms. Black added.

Still, part of Ms. Day’s strategy is something she calls a “scarcity model.” She doesn’t want the stores to carry too many size 4s and 6s, to keep customers coming back.

“If you like size 6 or 4 in one of the colourways or seasonal styles, it’s never our strategy to be fully at demand level there. So there will always be a certain amount of noise that we expect but that helps keep the product and the brand strong, which is also part of our strategy,” Ms. Day said.

She said the company is getting a better grip on how much product to stock to ensure that its customers leave the stores with a purchase. Its move a year ago into e-commerce has helped the retailer gauge demand, but social media can be an even better tool.

I picked up a fabric shaver at London Drugs for $10 to test out on my Tranquil Crops from last summer. As I posted before these crops came in Aruba Blue and were Modal/Beechlu and very thin and silky soft. Unfortunately they became extremely pilly after just 2-3 washes even though I washed it by itself, inside out and hung to dry. I wanted to test a fabric shaver because I just got a Lux hoodie a few weeks ago which are Modal as well and I would hate for that to be ruined so easily. The new Shanti Crops in stores now are identical in the fabric as were my Tranquil Crops.

The shaver worked really well considering it uses just AA batteries, the only problem is that it took me about an hour to get the whole thing done because the surface area of the shaver is so small and you need to go over areas a few extra times. The pants are pretty much unpilled right now and very soft again but I wouldn’t call them like new. I ended up returning that shaver and got a bigger more powerful one at Zellers for $20 and it came with an ac adaptor and had a much bigger surface area. This one is really powerful compared to the other one. 

I think if you have issues with pilling luon or modal with any of your clothes this is a worthy investment to have. Also make sure to wash natural fibres together (cotton, modal, vitasea) and synthetics together (luon, luxtreme, nylon) although that is how I washed the Tranquil crops and it didn’t make a difference.

In La Belle Province. GEC said they didn’t have any. If I don’t see this in stores on Monday I’ll be calling GEC again.

Hmm, I didn’t like this color before but I really like it on her and with the Shanti crops in grey.

Hmmmm…pretty, very pretty. To bad it’s so pricey. Althouth white may be a better investment because it can go with everything.

Today I went to the Lulu lab to pick up the Godess tank which Nancy of “your personal lulu shopper” recommended. I chose the pale blue one because I love that color but was a bit worried because the top of your bra will pretty much be showing (although I haven’t tried it on yet with a non-lulu bra). and I don’t have a white Flow Y bra yet, just a Potion Purple and a Faded Zap one which may work but Ill need a second opinion. The blue tank was also a bit of a thicker cotton material so not as sheer as the white. I love the way this tank fits as it’s so flattering to many body types. It really draws your attention up to the neckline but has a really pretty hem that hits at the right spot on your thigh just bellow your bum.

I also tried on the ride on crop without the zipper at the bottom and it was very cute.

The Nirvana skirt was very pretty too but I think it’s too short on me and the wider pockets and thick cotton added too much volume on my thighs and hips

The lab was very busy today with people trying on California Rolls, Tunics and Goddess tanks. Lots of new California Rolls in blue and brown and I think they also had black. The brown was not a very dark brown but it was still pretty, almost a cross between chocolate and oatmeal. I’m glad the Lab is doing so well, hope they post more pictures to the albums with pictures of all the color options as well. Seeing as Nancy is so busy with Lab orders these days.

Hmmm, should I get my daughters a few hoodies for when there a bit bigger? Very tempting.

OTTAWA — Lululemon Athletica Inc LLL.TO LULU.O said on Thursday its quarterly profit more than tripled and bested estimates on a sharp increase in demand for its yoga and workout wear.
The specialty clothing retailer, which hiked its 2010 revenue and profit forecasts, said sales growth was strong in both Canada and the United States.
Sales at stores open for at least one year, a key growth measurement in the retail sector, rose 51 percent. On a constant dollar basis, sales rose 35 percent.
The clothier sees fiscal 2010 revenue between $620 million and $635 million and earnings per share from $1.05 to $1.10.
Previously it forecast revenue of $570 million to $585 million and earnings per share of 1.00 to $1.05.
Vancouver, B.C.-based Lululemon said it earned $19.6 million, or 27 cents a share, in the fiscal first quarter ended May 2, up from $6.5 million, or 9 cents a share, a year earlier.
Revenue rose 69.3 percent to $138.3 million.
Analysts had expected a profit of 21 cents a share, on average, and revenue of $128 million according to Thomson Reuters I/B/E/S.
The company forecast fiscal second-quarter revenue of $140 million to $145 million and earnings per share ranging from 21 to 23 cents. It sees a comparable same store sales increase in the mid-20-percent range, on a constant dollar basis.
Analysts has estimated earnings per share at 21 cents on revenue of $132 million.
Gross profit rose by 112 percent to $74 million, as the profit margin increased to 53.8 percent from 42.9 percent in the same period last year.
Lululemon, whose growth has been crimped in the past by inadequate inventory, said the value of its inventory rose to $50.75 million in the first quarter, from $44.6 million last year.
Dollarama Inc DOL.TO, Canada’s largest operator of dollar stores, also recorded big quarterly gains on Thursday as profit more than doubled.
Its earnings rose to C$22.5 million ($21.6 million), or 30 Canadian cents a share, from C$11.1 million, or 26 Canadian cents a share, in the same period last year.
Revenue rose 14 percent to C$311.9 million.

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Except for the few strays they scatter around later on of course. I’m glad there is nothing I’m getting I guess but I know there were some good goodies for everyone else. All of the flashbacks which are very cute but my hoodie of preference is the Free2be which I now have 3 of. The WWA is very cute and if I didn’t already have one I would jump on the bold blue. I think that one is much nicer than either the Pig Pink one or the Frisbee Blue (the grey is a very nice neutral). Namaste cover up in Green, double back tanks, Flow Y in Savage Green, Heathered Grey and Lime You Know Me.

The Flow Y is a new favourite for me because it’s excellent for layering and coordinating colors and because I can use it for running and nursing. so I don’t have to dress for running in a hard to put on running bra and then get stuck having to do another feed before I go and fighting with the running bra.

I think what would have given me palpitations today would have been an Angel Blue Run: Swiftly Tank and a Potion Purple Pima T-shirt and of course the ever elusive Lux which I think is not coming back this year. Otherwise Lulu would have jumped on that craze a few weeks ago. There probably kicking themselves for not putting that in the works for this summer last year or whenever they start the planning for these things.