The End of the Lululemon Discount? The Surprising Reason the Retailer Is Slashing Sales, Not Prices

After slipping margins, the Canadian-American Retailer is looking reclaim full‑price sales in style

BY MOSES JEANFRANCOIS, NEWS WRITER @MOSESJEANS

Illustration: Inc; Photo: Getty Images

Lululemon is looking to double down in its upcoming fiscal year and shift towards full-price selling. This intentional shift will come partially from a new design strategy and a “reset” to the athleisure wear company amid a sensitive consumer market. 

“A top priority for the management team as we enter the year is returning to full-price sales growth in North America,” said Meghan Frank, Interim Co-CEO & CFO, on an earnings call on March 17. 

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The Canadian-American retailer best known for its technical apparel and activewear, has been around since 1998, but saw a boom in sales in the early-to-mid 2000s. Now after years in the game and a slight decline in sales, the company is looking to stand out again. 

According to the recent earnings call, U.S. revenue declined 1% in Q4, and North American comparable sales with declined 2%. 

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During 2025, Lululemon also experienced a deterioration in full price sales, causing stores to take deeper markdowns. 

Lululemon is looking to reverse these numbers with a so-called quiet luxury design in its catalog, with fewer logos and a more edited, coordinated color palette to maintain in a market where consumers are fatigued by loud branding.  

“This approach will reinforce our premium positioning that has long set Lululemon apart from others while also protecting operating margin,” said Frank. 

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