LULU Expands Global Footprint with Greece Debut; Great Wall Controversy; China Growth Stalling
Key Questions
What new markets is Lululemon entering?
Lululemon has launched in Greece through a partnership with Arion Retail. The company also plans to open its first store in India at DLF Promenade in New Delhi, with additional entries planned for Austria and Romania in 2026.
What caused the recent backlash against Lululemon in China?
A yoga event at the Great Wall featuring Japanese drums triggered nationalist criticism on Chinese social media, amassing 50 million Weibo views and forcing the company to issue an apology that crisis experts deemed incompetent.
How is Lululemon's performance in China trending?
Sales growth in China, which accounts for 19.4% of Q1 revenue and has driven most profitability, is slowing due to social media backlash and other factors. BNP Paribas now forecasts flat China revenue for FY27, down from consensus expectations of 11% growth.
Greece market entry via Arion Retail launched. India/Austria/Romania planned 2026. Great Wall yoga event sparked Japanese drum furor and nationalist backlash (50M Weibo views), forcing apology. Crisis experts call apology 'incompetent'. BNP now models flat China FY27 revenue vs consensus 11% growth — geopolitical risk directly impacting China growth assumptions. A new FT article confirms China sales are slowing, with social media backlash and PFAS fallout translating into real deceleration. BNP Paribas analyst notes China was 'the driver of all profitability'. Leadership vacuum until O'Neill arrives in September adds execution risk. China Mainland 19.4% of Q1 revenue. Investing in renewable energy fund for China supply chain (positive ESG).