Lululemon Inc. (NASDAQ:LULU) VS Nike Inc. (NYSE:NKE)


Recently with a gap of just a few weeks, Lululemon (NASDAQ:LULU) and Nike (NYSE:NKE) opened up new stores. Lululemon (NASDAQ:LULU) which became a multi-billion dollar company by selling yoga pants for $100 opened up its very first store for men. On the other hand Nike (NYSE:NKE) opened up a store for women.

Lululemon’s (NASDAQ:LULU) new men’s store is its way of stepping away from its original yoga attire. The company might have taken an idea from Nike’s (NYSE:NKE) running shoes that eventually lead to a complete sport empire. Lulu’s (NASDAQ:LULU) new store is situated in Manhattan. The store was inaugurated on Black Friday and it is meant to attract everyone from yogis to marathoners to other athletes and sport lovers.

Lululemon (NASDAQ:LULU) had declared plans of opening a store solely for men in 2013 and while talking about the targeted customers the company had said that their focus will be on men in their 30’s that are confident, goal-oriented and self-assured. The company called such a man as “athletic-opportunist”. The company is coming up with “joiner” which will be a new variable short liner meant for shorts.

The new store for men is still in its initial period and it is hard to tell whether it will be a success or not. However lululemon’s (NASDAQ:LULU) is going all out with its new line of stores and before the end of the year it is planning to open two more stores in Los Angeles and Miami. This is a smart move by lululemon (NASDAQ:LULU) as it is the holiday season and people shop a lot more during this time of the year.

The success of other companies like Nike (NYSE:NKE) affirms that there is a demand for men’s athletic attire.  So far lululemon’s (NASDAQ:LULU) new men’s store has had a positive response.

Nike (NYSE:NKE) has been stepping into women’s market for a while now but it was in November when the company officially opened up a store which was only for women. The company had previously talked about new ideas regarding women’s apparel that it will taking up and the new location carries one such idea which is based the idea of a Brazilian designer Pedr Lourenco. The designer by using the Flyknit technology came up with better sports bras and improved sneakers.

Nike (NYSE:NKE) opened another women’s store in Shanghai last week. The company plans on holding workout classes in its new store. Nike (NYSE:NKE) has had a positive response towards its women’s store.

Getting their feet into the neglected markets should be positive for both the companies. However lululemon (NASDAQ:LULU) bears a little more burden on its shoulders than market leader, Nike (NYSE:NKE).

Lululemon (NASDAQ:LULU) could not retain its shares from selling yoga pants and is currently down 50% in its same-store sales.  Therefore the new stores by lululemon (NASDAQ:LULU) will have to perform really well for the company to prove its market value. The company will reveal its 3rd quarter results next Thursday which will determine the potential of the company.