No. of Recommendations: 3
(I wonder whether consumers think the same or simply continue to love their clothes (and the status they are buying with it))?
I continue to watch the company as well, but am concerned about the corporate culture and the drive to change it back to it's old ways. That said, I do love the (deeply discounted) clothes I have bought from them, and discovered Eldest is also a BIG fan. Status oriented? Not one bit. Simply love the fabric, the fit, the quality. The fabrics hold up beautifully, unlike their low quality look a likes one can find at Costco, which seem to pill up as you look at them. Eldest hardly sees people as he works from home, and not at all status oriented either. He does not like to shop, and not yet settled into his own home, doesn't buy in volume to keep moving easier, which is why he likes the high quality clothes he buys here that seemingly last forever. He is definitely a quality over quantity guy.
As we travel, I pop into stores to check them out. Am consistently impressed by the quality of the workforce and how happy they all seem to be, how welcoming the stores are. No one standing there, staring at their phone, bored. All seem genuinely happy to be there, happy to help. Went after Christmas shopping with Eldest, and rather than let the store be insanely crowded, they had a line formed outside the store, waiting for their turn to enter as others exited with their purchases. This of course caught everyone's attention as they walked by, with many getting in line to see what the fuss was about. They were well staffed and very helpful, so purchases went surprisingly quickly. IMO their stores are a real asset. I have been to stores in NC, VA, and Montreal.
I had never been into a store before this past summer, and was pleasantly surprised that it wasn't just yoga clothes. As an investor, I am not pleased that I was surprised, and it's one of the things that make me hesitate. I wear my purchases for travel, the pockets absolutely perfect, with their inner pockets and zippers, to keep my cash and credit card/ID safe from pickpockets. Comfortable enough for all day tourism, while looking stylish. Even on steep sale, the prices were jaw droppingly high. Men's line is also great, though I can't get DH to even consider it, due to the price point. Note that the expansion past yoga pants is one of the ways in which the originator of the company thinks they have gone astray, while I think it's what makes the company worthwhile. I think they should go harder in their marketing to the travel crowd, and expand that line to be more inclusive of all sizes. Currently, they sell nothing past a size 16 for women, and according to one store I was in, those would be available only online. They are very youth oriented, and should find a way of expanding to the more affluent senior set with their designs, being careful not to alienate the young. I don't need or want my pickleball skorts that short, no matter what shape my legs are in, so I picked up knock offs of their skorts at Costco, where I was able to pick up 5 for the price of 1 on sale at LULU. I will need the 5 to come close to how long the LULU one would have held up well.
I see ways for them to improve and be more profitable, but do they? As I am not on the board, I am hesitant to buy shares until I can answer that question. I find the founder to have pretty repugnant ideas on marketing and it concerns me that he is looking to get involved again.
FWIW,
IP
