Business Wars: How Lululemon Won Athleisure | Mirror, Mirror | Episode 2

Host: David Brown (Wondery)
Release Date: October 29, 2025

Overview

This episode dives into the high-stakes journey of Lululemon as it faces internal crisis, changes in leadership, and increased competition while striving to maintain its dominance in the booming athleisure industry. Host David Brown charts Lululemon's transition from a niche yoga brand to a global powerhouse, explores major controversies that threatened its reputation, and unpacks the company’s strategic pivots, including its foray into technology and diversification into menswear. The story examines key inflection points—from founder Chip Wilson’s headline-making missteps to Lululemon’s acquisition of Mirror—and its evolving battle with new challengers like Alo Yoga and Beyond Yoga in a fast-expanding market.

Key Discussion Points & Insights

1. Sheer Pants Scandal and Public Fallout

• [00:10–01:57]

  • In March 2013, customers complain about Lululemon’s yoga pants becoming see-through. A recall follows, costing Lululemon $2 billion in market value.
  • Founder Chip Wilson appears on Bloomberg TV to address the issue, but instead of taking responsibility, controversially suggests women's bodies are to blame:
    • Chip Wilson: “Quite frankly, some women's bodies just actually don't work for it.” [01:01]

• [01:44]

  • Backlash is immediate and fierce, especially from the core female customer base.
  • Bloomberg Commentator: “When your main consumer is this female audience, you just can’t say stuff like that. You just can’t.”

2. PR Crisis & Leadership Transitions

• [04:19–07:07]

  • Wilson issues an apology video—focused only on employees, further inflaming public anger.
  • Chip Wilson: “I’m sad for the people of Lululemon who I care so much about.” [06:22]
  • The apology is castigated by media as “the worst corporate apology of all time.”
  • CEO Christine Day, praised for tripling revenue and quadrupling store count, resigns amidst ongoing friction with Wilson.

• [07:07–10:55]

  • Lululemon’s board, increasingly exasperated by Wilson’s behavior, removes him as chairman in December 2013.
  • Leadership passes to Laurent Potdevin (former CEO, Burton Snowboards, and ex-president at Tom’s Shoes).
  • David Brown: “There comes a point where the skills that build a company aren’t the same ones needed to run it. … Don’t confuse ownership with stewardship.” [09:35]

3. Expansion: International, Menswear, and Competition

• [10:55–15:14]

  • Lululemon’s first European store opens in London (2014); plans to open 42 more stores globally.
  • Launches full menswear line—by mid-2015, men's apparel represents 1 in 7 dollars spent at Lululemon.
  • David Brown: “Lululemon proved that you can move into men’s apparel without alienating the yoga core women who built the brand. … Expand after your base is strong enough to absorb a misstep.” [13:42]

• [18:04–20:00]

  • The Gap (via Athleta), Nike, Adidas, and a wave of new brands (Alo Yoga, Vuori) crowd into athleisure, inspired by Lululemon’s early lead.
  • Teen girls now prefer yoga pants to jeans—a culture shift Lululemon helped create.

4. Ongoing Leadership Turbulence & Reinvention

• [21:01–22:59]
  • Potdevin resigns in 2018 amid “standards of conduct” violations (inappropriate relationship, toxic workplace allegations).
  • Calvin McDonald (ex-Sephora CEO) takes over in 2018, launching aggressive plans for growth: doubling men’s and digital sales, quadrupling international business, and manufacturing running shoes.

5. The COVID-19 Effect & Acquisition of Mirror

• [25:43–30:49]
  • The pandemic fuels massive demand for athleisure and home fitness equipment.
  • In June 2020, Lululemon acquires Mirror, a wall-mounted workout device startup, for $500 million.
  • David Brown: “Lululemon buying a tech device company is a little like Apple buying a shoe brand. … The real discipline may be in saying no. Even when that shiny object seems irresistible.” [28:00]
  • The acquisition is later seen as a misstep, with Mirror sales underperforming post-lockdown.

6. Rivalry with New Challengers: Alo Yoga, Vuori, Beyond Yoga

• [30:50–33:44]
  • Alo Yoga expands globally, opening “Sanctuary” stores and building a lifestyle brand. By 2022, it surpasses $1 billion in sales.
  • Beyond Yoga, purchased by Levi’s, doubles sales within three years.
  • Lululemon responds by building a new flagship near Alo’s Toronto launch and transitioning its focus from Mirror hardware to fitness content via partnership with Peloton.

7. Chip Wilson’s Enduring Shadow & Brand Identity Crisis

• [33:45–36:40]
  • Wilson, even in retirement, stirs controversy with regressive statements about Lululemon’s diversity, sparking new (but short-lived) calls for boycotts.
  • Chip Wilson: “You’ve got to be clear that you don’t want certain customers coming in.” [late 2023 interview]
  • Lululemon distances itself from its founder, while critics debate if expanding beyond yoga diluted its identity.
  • David Brown: “Every brand has a center of gravity. Lose that, and customers can't tell you apart from the pack. The paradox here? Growth requires expansion, but credibility? That requires focus.” [36:15]

8. Market Dominance and the Future

• [36:41–38:39]
  • Lululemon, now the seventh-largest apparel company globally (2023), sets sights on $12 billion in revenue by 2026.
  • But competition is strengthening—Alo Yoga now operates 130+ stores.
  • The athleisure market, spawned by Wilson’s yoga-pants vision, tops $400 billion and could double in a decade.

Notable Quotes & Memorable Moments

• Chip Wilson on Bloomberg TV:
  "Quite frankly, some women's bodies just actually don't work for it." [01:01]

• David Brown on Leadership Transition:
  "There comes a point where the skills that build a company aren't the same ones needed to run it. ... Don't confuse ownership with stewardship." [09:35]

• Wilson's Non-Apology:
  "I'm sad for the repercussions of my actions. I'm sad for the people of Lululemon who I care so much about." [06:22]

• David Brown on Expansion:
  "Expand after your base is strong enough to absorb a misstep... If you're an entrepreneur, you might ask: what adjacent market would my core customers cheer me for entering?" [13:42]

• On the Mirror Acquisition:
  "Lululemon buying a tech device company is a little like Apple buying a shoe brand. … If an expansion doesn't build on your strengths, it might end up draining them." [28:00]

• Wilson, Reflecting on Lululemon:
  "You've got to be clear that you don't want certain customers coming in." [Late 2023, McAvoy interview]

• David Brown, On Growth Versus Identity:
  "Every brand has a center of gravity. … The paradox here? Growth requires expansion, but credibility? That requires focus." [36:15]

Timeline of Important Segments

| Timestamp | Segment / Topic | |-------------|------------------------------------------------------| | 00:10–01:57 | Sheer Pants scandal; Chip Wilson’s interview | | 04:19–07:07 | Apology video; reaction and CEO Christine Day resigns| | 07:07–10:55 | Wilson ousted as chairman; Laurent Potdevin named CEO| | 10:55–15:14 | Global and menswear expansion | | 18:04–20:00 | Competitor response: Athleta, Nike, new startups | | 21:01–22:59 | Potdevin's resignation; Calvin McDonald’s growth plan| | 25:43–30:49 | COVID effect; Mirror acquisition | | 30:50–33:44 | Alo Yoga and Beyond Yoga rise | | 33:45–36:40 | Wilson’s continued public impact; brand identity debate| | 36:41–38:39 | Lululemon’s global dominance; athleisure’s future |

Conclusion

This episode of Business Wars vividly illustrates how Lululemon navigated a minefield of controversy, leadership turmoil, and a rapidly changing competitive landscape to remain the standard-bearer in athleisure. Through strategic expansion—but not without costly missteps—Lululemon has built an enduring brand that helped define the market itself, even as newer rivals and its own founder's legacy continue to shape its future.