At any given moment, you can gauge what brand the "cool" New Yorkers are wearing based on the tote bags they carry.
This year, I've seen a plethora of grayscale, tie-dye totes emblazoned with the name "alo" in lowercase letters. They come from the popular athleisure brand Alo Yoga, which has been spotted on celebrities like Hailey Bieber and Kendall Jenner.
Although the company launched in 2007, it's made major strides in recent years. Last year, the privately owned company reached $1 billion in sales and nearly doubled business from 2021, the Wall Street Journal reported. Today, Alo has 63 store locations in the US, according to its website.
But when it comes to category dominance, Lululemon is the name on everyone's lips. The company has reported quarterly revenue growth since September 2020. Lululemon's fourth-quarter sales outlook came in below investors' expectations, but the company posted double-digit growth in Q3. Revenue increased 19% to $2.2 billion, compared to $1.9 billion last year. The company currently has 686 store locations globally.
Lululemon was ranked the most "fashionable or cool" sportswear brand in an online survey conducted by UBS Evidence Lab of 4,500 consumers across China, Germany, the UK, and the US, which took place from between August and September.
As the activewear category continues to gain popularity among today's consumers, it's only a matter of time before the space becomes crowded. Will Alo's cult following lead to bigger gains? Or will Lululemon continue to eclipse other athleisure brands?
I visited Alo Yoga and Lululemon stores to compare their offerings and determine which has the potential for long term success.