(Yicai) April 16 -- Lululemon Athletica said all products currently sold in China do not contain per- and polyfluoroalkyl substances (PFAS) after US authorities launched an investigation into whether its products include so-called “forever chemicals,” responding to rising health and environmental concerns.

The statement comes after Texas Attorney General Ken Paxton issued a subpoena to the company, citing recent studies and consumer concerns suggesting that some Lululemon products may contain synthetic materials and chemicals potentially linked to endocrine disruption, infertility, cancer, and other health issues. The probe highlights growing scrutiny of PFAS across industries such as apparel, cosmetics, and food packaging.

Lululemon said it had previously used related substances in a small number of waterproof products but phased them out during fiscal year 2023, adding that its current products do not contain PFAS and comply with relevant laws, regulations, and industry standards, according to a response provided to Yicai.

The investigation may further pressure the company’s brand positioning and market confidence, particularly as it faces increased competition and internal challenges. Analysts say the controversy could amplify stock price volatility and weaken the credibility of its “health” and “sustainability” narrative, even as the company continues to expand in China.

Chen Jingjing, founder of Jingjie Brand Consulting, said the PFAS issue has gained traction in the US in recent years, becoming a prominent public concern. “This investigation also serves as a warning to the industry that ‘environmental protection’ and ‘health’ can no longer be ambiguous marketing language; they must possess verifiability and consistency,” Chen told reporters.

Chen added that Lululemon’s stock price has declined significantly over the past year, while the departure of its chief executive earlier this year has weighed on investor and internal confidence. In the short term, the probe could intensify market fluctuations and public scrutiny, while in the longer term, it may erode the credibility of the brand’s premium positioning.

In March, Lululemon reported that revenue from the Chinese market rose 29 percent year-over-year in fiscal year 2025, outpacing its overall growth. The company expects China revenue to grow about 20 percent, with first-quarter revenue projected to increase 25 percent to 30 percent. For fiscal year 2026, Lululemon plans to open 40 to 45 new directly operated stores globally, with 25 to 30 in international markets, most of them in China.

Lululemon’s growth in China continues, but the company faces mounting challenges in the market. “In the Chinese market, emerging brands such as Alo Yoga and Vuori are rapidly expanding and diverting attention, while Lululemon must also contend with systemic competitive pressures from local brands in terms of pricing, content, and product adaptation,” Chen said.

She added that although Lululemon’s accumulated brand recognition and customer loyalty remain key strengths, the recent developments are undermining the stability of its premium brand narrative and may further weaken its appeal among younger consumers.

Editor: Emmi Laine