Athletic-Wear Retailer Lululemon To Start Offering Subscription Service

This year is looking to be a big one for subscription services with Disney+ launching in the fall and game services like Google Stadia being announced. Now, another service has thrown its hat in the ring, but it might not be one that most would expect.

Athletic-wear company Lululemon has announced plans to launch a subscription service by the end of 2019. It has been testing a subscription service since late 2018 with a $128 annual program in Edmonton, Canada, followed by a $148 option in Denver, Colorado. Anyone who subscribed received shirts or a pair of pants, access to events at Lululemon stores, and free shipping.

For Lululemon, the tests so far have been an overall success. According to Yahoo Finance, the company's sales and profits rose 26 percent and 85 percent, respectively, because of the demand for workout gear.

CEO Calvin McDonald expressed his pleasure with the tests on a Wednesday conference call with analysts, saying both markets “exceeded expectations." He continued, “We've been very happy with the test and pilot so far.”

And, as with any subscription service, it injects Lululemon with a steady stream of revenue that can be used in other company ventures. However, there are still questions about how free shipping could affect that revenue. But, as Yahoo points out, taking the service national may be able to offset that through the sheer number of subscribers.