LULULEMA is making the jump to the US, the company says, because “women’s clothes are becoming more and more important” in the US.
The US has been the No 1 market for Lululesa, which sells its products in women’s sizes from 16 to 42.
Lulula has recently introduced a women’s line in the same range, and has a similar marketing strategy to the American brand.
But in the last few years, the brand has been experiencing a downturn in the United States, due to rising competition from more modern, high-fashion brands.
In February this year, Lululias sales dropped to its lowest level since 2009.
This led the company to announce plans to close its store locations in the state of New York, in addition to the two stores it currently operates in Pennsylvania and Michigan.
LULULUEMA spokesperson Sarah Hagen said the company is “working to ensure that all stores and operations remain open and open to business”.
The company’s US sales are down to a level not seen since at least 2009, when Lululuemas annual revenue reached $1.4 billion.
Lulemon’s sales have also been affected by the US recession, which has seen its profits decline by as much as 40 per cent.
It has not released an official figure, but Hagen told ABC Radio Melbourne that the company expected its sales to drop by 20 per cent this year.
“The American recession has hit our sales and it’s hit our profitability,” she said.
Lula’s women’s business sales are forecast to fall by 30 per cent in 2018, the same as its US sales.
“It’s hard for us to provide our customers with the product they want,” Ms Hagen added.
Lulu is not the only women’s brand to be hit by the American recession.
In March 2018, Gap closed a store in Ohio, and in February 2019, Abercrombie & Fitch closed a location in New York.
While Lulumas sales in the two states were not affected by either of those closures, both brands were forced to cut their headcount.
“We lost an incredible amount of staff,” Abercrambie said at the time.
Gap said it was “working closely with the local businesses to maintain our store footprint in Ohio and New York”.
“We want to thank all of our customers for their continued loyalty and patience during this difficult time,” it said in a statement.
Lulumulema has been in the news recently for its attempts to expand into Australia.
In June, the clothing company was awarded $3.7 billion in funding from the Australian Government’s Australian Industry Group.
The funding is part of the government’s $4.2 billion National Infrastructure Investment Fund (NIIF), which was launched in July last year.
The government has committed to funding the construction of a $1 billion shopping mall in Sydney.
The Luluema brand was initially announced as part of this project in 2013.
In July, Lula announced that it would launch a women-only store in Sydney, which will open in 2019.
The company also announced that Lula was working on opening a women and children’s store in Melbourne.
In August, Lulumulesa was also awarded $1bn in funding by the government.
It is unclear if the $1billion will be spent on the new store or the $2.2bn funding announced earlier in the year.
But there are indications that the government may be stepping up its investment in Australian clothing brands.
Earlier this year the government announced that the National Theatre, the world-renowned Sydney Opera House and the Sydney Opera Club would all be included in the country’s first new department store in two decades.