Lululemon's founder perfectly summed up how Under Armour is killing the brand

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.

Currently, Under Armour’s market capitalisation is approximately $US21.04 billion, and Lululemon’s is approximately $US7.37 billion.

Lululemon is obviously a smash success — it has a very loyal following and a stronghold on its athleisure competitors. It has continued to thrive, even after Wilson resigned from the brand’s board.

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.

Under ArmourFacebook/Under ArmourUnder Armour’s women’s business is thriving.

Under Armour’s underdog ethos appeals to customers. “I will what I want,” Under Armour’s catchphrase for its women’s line, seeks to empower female consumers.

Nike has heavily pushed its women’s sector — and the payoff has been huge.

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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