The Gap Inc. (NYSE:GPS) and Under Armour Inc (NYSE:UA) both make similar products at slightly lower price points, and both have made it clear that yogawear is going to make an impact on their future bottom line. Now Lululemon is in a position where it can conceivably pull an important manager from one of those competitors.
At Gap, Art Peck is managing the portfolio of brands that Athleta falls into. The role is new to him, but he’s been with the company since 2005. His experience as president at The Gap Inc. (NYSE:GPS) North America would be an extremely valuable tool for Lululemon, if it chose to pursue him.
At Under Armour Inc (NYSE:UA), both Charlie Maurath and Henry Stafford would be welcome additions to Lululemon’s team. Murath is the president of Under Armour’s international business, while Stafford is senior vice president of apparel. Both executives have experience that would help Lululemon as it pushes for more international exposure.
In general, I think Lululemon Athletica inc. (NASDAQ:LULU) still has a lot of room left to run. While Day is impressive and important to the company, she isn’t irreplaceable. I’d love to see Lululemon take this opportunity to add a rival to its team, which would give it a strong competitive advantage. If I were on the fence about Lululemon, I’d see this downturn as a real opportunity.
The article Is This the End of Lululemon as We Know It? originally appeared on Fool.com and is written by Andrew Marder.
Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica, Starbucks, and Under Armour. The Motley Fool owns shares of Starbucks and Under Armour.
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