RoAnn Costin is a Massachusetts financial executive who directs Wilderness Point Investments, LLC, and focuses on startups and growth companies. One company that RoAnn Costin served on the board of for more than a decade was Lululemon Athletica. She invested in the fast growing athleisure retailer prior to its going public.
As explored in a Harvard Business School article, Lululemon found a way to thrive even during the uncertainty surrounding the pandemic. This was accomplished through a strategy that placed technology at the forefront. In addition, the firm was in a solid financial position heading into 2020 that included $1.1 billion in cash and no significant long-term debt.
This cushion enabled Lululemon to provide a strong support system for brand ambassadors that interact with its consumers around the world. Using Instagram and other social media, they facilitate workouts and wellness classes. A total of $2 million went toward an Ambassador Relief Fund that enabled many Lululemon ambassador studio owners to weather economic the headwinds.
At the same time, Lululemon maximized the use of shuttered retail locations by transforming them into “ship-from-store hubs” that took advantage of its RFID inventory-tracking technologies. Strategically increasing prices on popular items such as leggings and sport bras, Lululemon also launched flexible payment plans that enabled customers to spread payments across four installments. Finally, Lululemon acquired the home-fitness tech startup Mirror in 2020 and leveraged its interactive workout machine in providing on-demand and live classes. The result was that Lululemon not only stayed profitable, but was able to expand market share during a trying economic period.
