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Abstract:Though both Lululemon and Athleta continue to report strong performances, Lululemon is outpacing Athleta in product and store innovation.
Lululemon, the Canada-based athletic retailer, continues to impress investors with strong sales. The company reported a 14% increase in same-store sales in the first quarter of 2019.
Meanwhile, Athleta has been a bright spot for its struggling parent company, Gap Inc. “Athleta continues to be one of North America's fastest growing athletic brands that is positioned to capture share,” Gap Inc. CEO Arthur Peck said in a call with investors in May.
While both brands are posting gains, Lululemon is growing at a rapid pace as it innovates in areas Athleta lacks, including menswear and in-store technology.
We visited Lululemon and Athleta stores and saw why Lululemon is dominating the athleisure sector.
Though both Lululemon and Athleta continue to report growing sales in an increasingly saturated athletic wear market, Lululemon's focus on innovation in both product assortment and in-store technology is paying off.
In a call with investors on Wednesday, Lululemon CEO Calvin McDonald reported significant growth across the company's “Power of Three” growth plan — a five-year strategy focused on bolstering its menswear, e-commerce, and international businesses. Progress in these categories showed: Menswear revenue in the first quarter of 2019 rose 33%, online revenue increased by 35%, and international revenue leapt by 39%.
“Our innovative merchandise assortments and our engagement with guests around the world enables the financial results we're proud to report to you today,” McDonald said on the call.
Read more: Lululemon is growing beyond the women's yoga pants that made it famous as competition heats up
While it remains to be seen how Gap Inc.'s ongoing challenges may impact Athleta — including Gap's recently announced plans to spin off Old Navy into a separate company — the brand is still on an upward trajectory and plans to open a total of 25 new stores in 2019. Athleta, which Gap acquired in 2006, also just celebrated its first year as a certified B Corporation, a testament to its work on sustainability.
Still, a visit to both stores showed why Lululemon's rapid growth is outpacing Athleta:
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
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