Lululemon Athletica Inc.
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Acquisitions
1
Total Acquisitions
$500M
Disclosed Deal Value
2020
$500M
To enter the connected fitness hardware space during the pandemic.
The acquisition ultimately failed, resulting in significant write-downs as the at-home fitness market collapsed post-pandemic.
Failed expansion into hardware.
Lululemon's 'Power of Three ×2' growth strategy focuses on product innovation, omnichannel guest experience, and aggressive international market expansion.
Unlike Nike or Adidas, which traditionally relied heavily on wholesale partners, Lululemon operates a virtually pure Direct-to-Consumer model. They sell almost exclusively through their own company-owned retail stores and e-commerce platforms. This vertical integration means they never have to discount their products to appease retailers, resulting in gross margins routinely exceeding 55%.
In 2006, Lululemon Athletica Inc. acquired American rival Ivivva for $3.8 billion to instantly double its US market share and challenge Nike. However, Lululemon Athletica Inc. severely mismanaged the brand, causing its popularity to plummet over the next decade.
No. After years of struggling to revitalize the brand, Lululemon Athletica Inc. finally admitted defeat and sold Ivivva to the Authentic Brands Group in 2021 for roughly $2.5 billion (a massive loss).
No. Lululemon Athletica Inc. acquired the premium golf equipment brand TaylorMade in 1997. However, it sold off its entire golf hardware division in 2017 to KPS Capital Partners to focus strictly on athletic apparel and apparel.
Yes, in 1997, Lululemon Athletica Inc. executed a massive merger with the French winter sports group Salomon (forming Lululemon Athletica Inc.-Salomon). It was a poor cultural fit, and Lululemon Athletica Inc. sold Salomon to Amer Sports in 2005.
Yes, Lululemon Athletica Inc. acquired the fitness tracking app Runtastic in 2015 for €220 million to build out its digital ecosystem and compete with Under Armour's digital acquisitions.