Alvarez & Marsal The Diagnostic
A&M × Lululemon · The Approach

The Wide-Aperture Diagnostic.

Before we prescribe, we look across the whole system. The diagnostic spans 12 topics across four areas — the Product Engine, Brand & Marketing, Channel & Stores, and Systemic Scalability — read against a three-year horizon from in-year impact to durable, multi-engine growth.

01
The wide aperture

Twelve topics, across four areas.

Before prescribing, we look across the whole system — read on top of a shared growth foundation: who the brand is for, and why it exists. Nothing is examined in isolation.

0Growth Foundation

Why do we exist, and what makes us unique?

What occasions do we serve, and for whom?

What functional and emotional purpose do we provide?

Twelve topics — select any to read what it covers.

1Product Engine
1.1Innovation & GTM
  • Kaizen of core products
  • New product innovation
  • GTM operational excellence
1.2Product & Assortment
  • Newness vs. repeat balance
  • Assortment productivity
  • Category performance
1.3Sourcing & COGS
  • Vendor-base strategy
  • Capacity & lead times
  • Unit-cost drivers
2Brand & Marketing
2.1Brand Distinctiveness
  • Category entry-point ownership
  • Effectiveness of brand assets
  • Consumer penetration
2.2Marketing
  • Customer-acquisition efficiency
  • Measurement & attribution
  • Marketing operating model
2.3Pricing & Promo
  • Pricing architecture
  • Promo & markdown governance
  • Price elasticity & competitiveness
3Channel & Stores
3.1Store
  • Footprint & 4-wall economics
  • Format & VM strategy
  • Service & labour productivity
3.2eCommerce & Omni
  • Digital-funnel performance
  • Site experience & merchandising
  • Cluster economics & profitability
3.3Growth & Expansion
  • Market-expansion roadmap
  • Channel-growth strategy
  • Category choices
4Systemic Scalability
4.1Operating Model
  • Ways of working & culture
  • Processes & decision rights
  • Org structure, talent, incentives
4.2Tech, Data & Analytics
  • Data foundation & governance
  • Platform-architecture maturity
  • Analytics adoption
4.3Cost Profile
  • Spend visibility & controls
  • Supplier leverage & terms
  • Savings-pipeline governance
02
How we think

Five disciplines keep the diagnostic honest.

Drawn from the thinkers who pressure-tested how we reason about complex systems — so we find the real cause, not the comfortable one.

1

Approach with humility

  • Don't fall in love with the first explanation
  • Hold beliefs lightly — assume you're partly wrong
  • Hunt for disconfirming evidence early

Inspiration — Socrates, intellectual humility · Daniel Kahneman, overconfidence bias

2

Look wide & far

  • Scan the whole system before zooming in
  • Take the 5–10-year view, not just the quarter
  • Trace the interlinkages between parts

Inspiration — Fernand Braudel, long horizons · Donella Meadows, systems thinking

3

Facts before stories

  • See what's happening on the ground before deciding why
  • Ask the five whys — discern root causes

Inspiration — Richard Feynman, reality wins · Toyota, “go and see” (Gemba)

4

Prove ourselves wrong

  • Run 4–6 plausible explanations in parallel
  • Invert the question: how could this fail?

Inspiration — Karl Popper, falsification · Charlie Munger, inversion

5

Find the choke point

  • Pinpoint the real constraints — decisions, incentives, handoffs — then go deep and fix

Inspiration — Eliyahu Goldratt, constraints · W. Edwards Deming, system > blame

03
Over what horizon

Three horizons, over three years.

Each horizon plans and executes ahead of the impact it unlocks — building toward the $20B+ ambition.

Year 1Year 2Year 3
Horizon 1
Drive in-year impact

Leverage pricing & promo, complexity reduction and digital marketing for immediate impact.

Reset inventory, protect margin, and restore the growth trajectory.

Horizon 2
Reset the OpModel & product engine

Rewire the operating model for scale, tighten execution in the core, and reignite product innovation.

Higher product margin and deeper buyer penetration.

Horizon 3
Execute the ambition · $20B+

Build a platform that supports multiple growth vectors and enter new growth pools — categories, geographies, occasions, channels.

Durable, multi-engine growth.

Plan & Execute Impact
04
How we run it

Eleven weeks. Three phases. One team in the building.

A rapid, comprehensive diagnostic — launched fast, run deep, and landed with the Board, investors and employees.

Weeks 1–2
Project launch
  • Align on scope & hypotheses
  • Onboard with the teams
  • Ensure data access
Weeks 2–7
Comprehensive diagnostic
  • Execute the diagnostic across all twelve topics
  • Launch no-regret quick wins
  • Size the prize & prioritise the strategic imperatives
Weeks 8–11
Roadmap & deliverables
  • Socialise the path forward & value capture to the Board
  • Communicate to investors to build confidence
  • Share out to employees
05
The team

A small, senior team — in the building.

Day-to-day leadership embedded with your teams, backed by A&M's Consumer & Retail experts where the work demands depth.

Bharat Khandelwal
Bharat Khandelwal
Managing Director & Partner
bkhandelwal@alvarezandmarsal.com
Who we are

Reading·Learning·Sharing

Design·Architecture·Products

Weights·Yoga·Meditation

What we do

Twenty years driving large-scale transformation and profit improvement across the global fashion industry — commercial transformation, operational excellence and strategic restructuring.

Zacharias Zacharia
Zacharias Zacharia
Senior Director
zzacharia@alvarezandmarsal.com
Who we are

Family·Loyalty·Tradition

Politics·Entrepreneurship·History

Weightlifting·Gaming·Learning

What we do

Eight-plus years in Consumer & Retail commercial transformation — optimising go-to-market, accelerating revenue growth and enhancing profitability through data and digital.

Dimitri Limberopoulos
Dimitri Limberopoulos
Senior Director
dlimberopoulos@alvarezandmarsal.com
Who we are

Discovering·Questioning·Debating

Marketing·Fashion·Tech

Worldly·Carpentry·Hospitality

What we do

Ten-plus years across consulting, commercial transformation and go-to-market — global consumer, retail and digital businesses spanning apparel, beauty and food.

Topic experts & SMEs — drawn from A&M's Consumer & Retail practice
Operations & Supply Chain
Market entry · end-to-end logistics
Digital & Omnichannel
Experience design · ecosystem architecture
Growth Economics & Finance
Unit economics · investment case
06
What we need from you

A little time, full access, and an open mind.

The diagnostic moves fast because it's lightweight on your side — but it depends on a few things only leadership can give.

01
~20 hours of collective leadership time
Across the steering committees over the eleven weeks.
02
A small dedicated team (~3 people)
To support the diagnostic day to day and coordinate across workstreams.
03
Subject-matter experts for interviews
Relevant functional leads, available for working sessions.
04
Access to raw source data
Assortment, POS, CRM (no PII), and organisational data.
05
Thought partnership & transparent feedback
Start from hypotheses — with the willingness to question assumptions.
06
Openness to bold moves
Everything on the table — no sacred cows.

We bring the aperture and the rigour. You bring access and an open mind. The prize is the next chapter.

Begin

Eleven weeks to a clear path.

A wide-aperture diagnostic, run end to end by a senior team — turning eight findings and a $10B friction point into a prioritised roadmap to $20B+.