Lululemon to have ‘more discipline’ in fabric liability
10/12/2015
On a call to investors to discuss third-quarter results, Laurent Potdevin said the company will focus on improving planning to have “a more reliable estimate of our production requirements that we can take to our suppliers to deliver more consistent production requirements, reducing the amount of cancellations that we’ve seen and as well late-stage change orders”.
He also said there will be “more discipline” it how it managers it fabric liability. “We've taken some steps earlier in this year to clean up our position. We feel like we should be in a good place to enter 2016 in that regard and also as our internal processes for product development improve, we can improve our development ratios, which again is an important part of the liabilities that we generate to support our product process.
“And with Lee coming on as creative director, his first area of focus is to deliver the same type of innovation both from a fabric, styling and construction standpoint that we have with the pant. So that is a very substantial opportunity for growth.”
The Canadian company reported third quarter revenue increased 14% compared with Q3 2014 to $419.4 million.
Sales were driven by increases in pants and bras, while the men’s business grew 24% against last year.
The company has been restructuring over the past two years, partly in response to a product recall over pants that were deemed two sheer in 2013.
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