Nike focuses on women’s wear – challenges Lululemon
Global athletic apparel market leader Nike is shifting its focus onto yoga pants and sports bras. The company has had a sluggish year so far, remaining on top, but seeing its lead narrowed by ambitious underdogs like Puma and Adidas. Now, in an effort to return to the kind of growth that put it where it is, Nike is looking to capitalize on current trends. That means mounting a challenge against Lululemon, the company that first popularized women’s athleisure.
According to Trevor Edwards, Nike’s president, female athleisure is the next big growth area. He told listeners at a recent presentation: “This $7 billion business will continue to be fueled by more women engaging in sport, wellness and activity. Our growth in our women’s business is outpacing our men’s business, and it will continue to do so.”
After a sluggish year, Nike had a great five days last week
Source: Yahoo Finance
Nike said that it plans to open “pant studios” (by which it means yoga pants) in 5,000 stores on Nov. 1 to “highlight new styles for workouts and leisure.” This would dwarf Lululemon’s existing presence, which is just 421 stores, mostly around the U.S. and Canada.
The company will also invest heavily into products like sports bras, making them more stylish. At last, Nike has found a category in which it can once more pursue massive growth. At least, that’s what the company’s CEO, Mark Parker, says. Speaking at the same presentation as Mr. Edwards, he told people: “we see the opportunity for new growth. We’ve sharpened our approach.”
Dominion holds Nike in its Global Trends Luxury Fund.
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