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- 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:
We visited a Lululemon store in New York City’s Soho neighborhood first.
Bethany Biron/Business Insider
The sprawling store has three floors: two dedicated to womenswear, one for men’s clothing, and an exercise studio that hosts a variety of classes.
Bethany Biron/Business Insider
We started with a visit to the men’s section, on the basement level. Lululemon CEO Calvin McDonald said menswear growth in the first quarter of 2019 was driven primarily by its ABC (anti-ball crushing) pant, as well as its core short styles.
Bethany Biron/Business Insider
See the rest of the story at Business Insider
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SEE ALSO: Lululemon’s profits and sales top Wall Street’s expectations — again
Source: Business Insider – feedback@businessinsider.com (Bethany Biron)