Lululemon founder Chip Wilson thinks Under Armour has Lululemon beat in some areas.
“Three years ago, Lululemon was worth twice as much as Under Armour,” Wilson said at the International Shopping Centres Conference, via The Globe and Mail.
“Today, Under Armour is worth three times as much as Lululemon. Lululemon has a much better business model, makes bigger margins, makes bigger profit. That’s the discrepancy,” he added.
But now that more viable competitors are popping up — namely, Under Armour — Lululemon needs to stay on its toes. A recent price hike showed that while women were willing to pay a premium, they weren’t willing to empty their bank accounts for the product.
And now, Wilson — who is famous for his outrageous and often derogatory commentary — and his family have launched a new company called Kit & Ace, which specialised in “technological luxury.” Wilson’s wife, Shannon, told the International Shopping Centres Conference that she does not see her family’s new brand as a direct competitor to Lululemon.
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