Fitness is one of the industries that have taken a hit during the coronavirus, as thousands of gyms around the world shut down indefinitely to stop the spread of the virus.
Many small fitness brands went out of business but the biggest shock came after Fitness Planet announced bankruptcy, with plans to shut down over 1,000 franchises to mitigate their expenses.
Coronavirus has forced people to self-isolate at home
But one report shows that it’s not all doom and gloom for the health and wellness sector. Just last week, Lululemon released its quarterly earnings report.
And while the sales were down by 17%, the luxury athleisurewear brand is hoping to rise like a phoenix from the ashes once the lockdown ends.
The decline in sales was surprising, considering the recent growth of online shopping which shows that people are really struggling to maintain a fitness routine during the quarantine.
But many analysts are expressing their confidence in a brighter future for the industry, saying that the downturn is only temporary.
Randal Konik, who works as an analyst at Jefferies, was optimistic about Lululemon’s future. In a note to his clients, he explained that Lulu was experiencing very rapid growth prior to the pandemic, and it is poised to end the year on a high note.
He predicted an increase in demand for athleisurewear over the next few months, and Lulu will be ready to capitalize on it.
Lululemon is a brand that has quickly risen to the top of its niche over the past few years. In fact, the brand recorded its highest performance to date in the previous quarter, according to an NDP report.
Konik believes that considering the new social distancing rules, people will be saving a lot more money this year that they would otherwise spend on partying and holidays. Moreover, they will prioritize health and wellness over having fun, which means that the future of athleticwear companies looks brighter than ever.
We are in the middle of a global health crisis, and people around the world are waking up to the reality of how much they’ve neglected their wellbeing, making their bodies susceptible to illnesses like COVID-19. The future is very much health-oriented because our survival depends on it, says bestselling author Jason Kelly.
Other experts like Marc Magliacano of L Catterton agree with the sentiment that people will invest more of their time and financial resources into fitness, in order to combat obesity, which is the biggest reason behind the high COVID-19 mortality rate.