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Brand Battles: Lululemon vs. Gap's Athleta

Thursday, Feb 27, 2014 - 03:19

We compare Lululemon's yoga pants to Athleta's and look at which company has more muscle.

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From his -- world and you know outcomes. That clash. Levitt an athletic ability and -- in the seven million dollar world of women's active Wear a key driver. The active can't sales of which are up 10%. In one corner lululemon. Which gained cult like status with its cotton -- fabric a little line claiming it's like wearing. But that's -- turned a bit too -- last march when some -- and pants -- through same store sales slip and Lou lowered its fourth quarter guidance for Atlanta. Can't skate was a chance to get a leg up on the competition. And is looking to do just that by mimicking. And removed. It's basic stretch and it made of cotton like Atlanta club -- -- cost us eighteen dollars less than news. Plus it comes in plus size offerings -- side too well. So which companies got more muscle. With more than 225. Stores and one billion dollars in annual sales. Vancouver based has big time -- client and you know appearance and others who went all in lifestyle. Which includes yoga classes and other consumer time but -- powered athletic is taking a page blues played. At sixty occasions plant to 100 by year's end. Often don't lose by opening stores blocks away. -- does break out -- sales numbers but the brand at -- parents integration sources that. Folks that gap have built brands. You know from the beginning and so if anybody knows how to acts acute and do this properly and take it from. You know -- near fifty cents 300 stories are -- thousand stores globally. It's the people over graphic happens I think when they -- -- wealth of talent to John and they have the relationships. To get things on like story at least that is accessing. Inventory. And product development that that may be Lulu -- doesn't have the same sort of depth. Asked for customer experience. Little caters to a more affluent crowd keeping inventory tight and offering discounts. Return policy is strict two weeks' period. At Atlanta you could bring stuff back any time. Prices across the border comparable that would -- more markdowns and Lulu which can be a double edged sword. -- is profit margin was 53% last quarter at let apparent gaps with 40% so who will win this classic survival of the. Analysts to believe that limit is still the leader within that industry. More than that culture lululemon has created a lifestyle and this has definitely helped them with the brought brand loyalty. And that's something that Atlanta has tried to -- replicate very carefully if you read some of the recent reviews on the lululemon. They're consumers are very upset recently went the hemming underpants. And if you go to Atlanta you can see that right now they're offering free coming up their stores so that's to show you how close Atlanta -- what -- what lemon is doing. Lose missteps may not have up into the industry just yet but they didn't give it a good kick in the pants for Reuters -- expert art. Now let's say.

Brand Battles: Lululemon vs. Gap's Athleta

Thursday, Feb 27, 2014 - 03:19

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