Dive Brief:
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Lululemon Athletica founder Chip Wilson told Bloomberg that he once considered acquiring Under Armour Inc. at a time when the yoga-wear company was worth twice what the athletic-gear company was worth.
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Three years on, Chip Wilson is gone, having left after clashing with the board over strategy. Lululemon has stumbled, and Under Armour has become the number two sportswear retailer.
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Wilson also hinted that Lululemon could now be a takeover target for Nike, Under Armour or another retailer or retail company. Lululemon shares rose after Wilson’s remarks, though no company involved in that speculation has commented.
Dive Insight:
Think about the phenomenon that Lululemon was three years ago, when Wilson says he was thinking about a takeover bid for Under Armour, and you can picture the move. Consider, then, how quickly and dramatically the tables have turned, as Wilson himself noted to Bloomberg.
“I would think now that Under Armour is worth three times the amount of Lululemon, somebody’s got to be thinking something,” Wilson told Bloomberg’s ‘GO’ show.
Others in recent weeks have speculated that Under Armour or Nike could be interested in Lululemon, which has seen its stock value decline this year some 17%.
