The stocks of Lululemon Athletica might be spiraling, but still the proactive approach of CEO Laurent Potdevin might be just enough to save the reputation and shares of the Canadian retailer.
Potdevin told Jim Cramer, host of Mad Money, on Thursday, that the company was a little disappointed with their Q1 as they had a slow start. The quarter was a small one and they identified the issues in the early stages only and from the standpoint of assortment and visual merchandising online, they have taken drastic steps to fix these issues.
Since the company started seeing results that were on the weaker end, which sent the stocks of the company plunging after the earnings report on Wednesday, the company has been flexing their creative muscles and trying to introduce products and new colors to their product line.
Potdevin added that he was extremely confident about all the steps that the company has been taking and how quickly they have had an impact on their performance. They had seen an instant boost in their performance.
And despite all the downgrades given to the stock by the analysts, Potdevin said he was the most excited about this fiscal year than he had been in any other year since he joined the company in 2014.
The CEO said that when you take a look at the company’s 2017 guidance in which they are guiding a revenue increase in double digits, which is in line with the growth in revenue, he feels really good.
When Cramer asked Potdevin that their competitors like Old Navy, J. Crew and Bandier are catching on to the trend of health and wellness really quickly, Potdevin pointed out that the company’s business overseas is a proof of their leadership in this space.
Lululemon is not just moving forward with development of products. The CEO added that the retailer is now continuously trying to buy back as much of stock as they can. The retailer also plans to roll out an ad campaign globally in May. They would also grow their footprint on the brick and mortar front by 10% in 2017.
While this initiative regarding brick and mortar seems a little counter intuitive in such an environment where all the retailers are really struggling to make their ends meet, the CEO Potdevin insisted on making this their strategy, which would involve expanding in locations that are high performing saying that it would work.
The CEO said, where each and every retailer is closing or going smaller, they are going to double down their stores where they are having a really good performance. So, they are optimizing their very light, but highly productive footprint in a really powerful way.