It used to be that dressing like mom was the last thing any 12-year-old girl wanted to do. But no more - especially if mom is into yoga-inspired apparel.
That's the hope, at least, of clothing retailer Lululemon Athletica Inc. as it gears up to launch a new line for preteen girls, aged six to 12. The Vancouver-based company is the latest in a long line of fashion retailers jumping into the tween market and hoping to cater to style-conscious grade schoolers.
But will the preteen market be a boon for a company that made a name for itself with $100 sweatpants?
Lululemon says the clothes will be aimed at girls who want athletic clothing they can wear to school and everywhere from dance class to soccer practice. The company hasn't released pricing plans for the pants, jackets and tank tops in its youth line, dubbed Ivivva Athletica, which will also include accessories such as leg warmers and headbands. But the clothes are expected to retail for about 30 per cent less than the adult sizes.
"I think parents are going to get good value out of each and every single piece, so there won't be a hesitation to buy," said Deanne Schweitzer, Lululemon's head of global strategy.
Ms. Schweitzer said staff have long noticed girls buying Lululemon clothes in adult sizes and then taking advantage of the company's free hemming service to cut the clothes down to size. "We were watching kids wearing Lululemon that didn't fit them," she said.
Ms. Schweitzer said the clothes, which will hit shelves in November, will have their own distinct style, rather than simply being smaller versions of adult apparel. The line will be tested at three Ivivva-branded stores in Victoria, Vancouver and Calgary.
Two of those stores used to be outlets selling the company's organic-fabric Oqoqo line, which will now be folded into the offerings of Lululemon-branded locations. The company will open a new location in Calgary, after recently slowing its pace of expansion. It had previously planned to open 35 stores annually until it reached 300 locations across North America, but the company has said it expects to open between five and seven stores in 2009. Lululemon had 114 stores at the end of the first quarter, including 43 in Canada, 65 in the United States and six in Australia.
The decision to market to tweens could work well for Lululemon, says Kathy Dean, president of the Tobe Report, a global fashion consultant based in New York. "I think that it's an untapped market," she said. "I don't think anyone knew the word 'tween' 10 years ago. But parents have been spending more on children's apparel."
Teen retailers Aéropostale Inc. and Abercrombie & Fitch Co. have both ventured into the tween market.
Lululemon reports its second-quarter earnings next week and analysts surveyed by Thomson Reuters are expecting revenue of $88-million (U.S.) and earnings per share of 10 cents. That compares with revenue of $85.5-million and earnings of 18 cents for the second quarter the previous year.
Lululemon Athletica (LLL)
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