Lululemon expands into the footwear market in an attempt to compete with industry leaders such as Nike and Adidas.

• Starting March 22, select markets will offer the company's first-ever running shoe for women, named Blissfeel.
• Lululemon's entry into the sneaker market with its launch could be a significant growth strategy for the athletic clothing retailer, allowing it to compete with larger brands.
• This summer, Lululemon will launch two new women's cross-training sneakers, priced at $138 and $148.

The company known for its leggings and sports bras is expanding into footwear, introducing a new product category and intensifying its competition with brands like Nike and Adidas.

The Blissfeel, the company's first women's running shoe, will be available for purchase starting March 22 in select markets across North America, Mainland China, and the United Kingdom. The shoes will retail for $148.

Lululemon is officially entering the sneaker market with a new collection from Athletic Propulsion Labs, which could be another growth opportunity for the retailer as it competes with larger brands.

The pandemic has led to a surge in sneaker sales as consumers prioritize comfort while working from home and engaging in physical activities. The sneaker industry is highly competitive, with major brands like Nike and smaller, specialized brands like New Balance offering running shoes.

Lululemon plans to launch a men's footwear collection next year, while also expanding its selection for women with special-edition shoes and seasonal sneakers.

Lululemon will launch four new women's cross-training sneakers this summer, priced at $138, $148, $58, and $128.

Lululemon and CEO Calvin McDonald achieve a long-awaited goal with the launch.

In 2019, before the pandemic, McDonald revealed that he saw a gap in the shoe market. He suggested that Lululemon would eventually launch its own footwear line, capitalizing on its success with APL.

McDonald stated on Tuesday that expanding into the footwear industry was the logical next move for the company.

"We are entering the footwear category by designing products that address unmet needs, with a focus on women's needs, just like we did with our apparel business," he stated.

In 2021, the sales of athletic footwear in the US increased by 17% for men and 24% for women compared to the previous year, as per data from NPD Group.

According to NPD sports analyst Matt Powell, the top sneaker brands for women are Nike, Skechers, Adidas, Brooks, and New Balance. Powell predicts that sales of both men's and women's sports footwear will increase by a low-single-digit percentage this year, following last year's gains. However, the first half of 2022 may present bigger challenges for the industry than the latter half.

Last year, the government's stimulus checks boosted consumer spending, as Powell stated, and many consumers chose to purchase new shoes.

Despite its revenue growth of 10.6% to $4.4 billion in the 12 months ended Jan. 31, 2021, compared to $3.98 billion in the previous year, Lululemon's stock has declined more than 20% year to date.

In comparison to Nike, Adidas has not yet reported its sales for 2021. However, its revenue for the 12 months ended December 31, 2020, was 19.8 billion euros, which is equivalent to approximately $21.6 billion.