Under Armour Looks Great At Lululemon.

The global M & a market has been quite active recently, and many people have also cast their eyes on the fashion industry. The latest target: the Canadian Yoga brand Lululemon.

Under Armour has recently been actively looking for acquisitions to achieve business transformation and help companies develop further. This year, the company invested $560 million to acquire fitness app MyFitnessPal and Endomondo, trying to build the world's largest digital health and fitness community.

Trading with Lululemon will undoubtedly help Under Armour march into the field of women's clothing, but it's not so easy to pinch them together.

American cutting-edge Sports brand Under Armour may extend olive branches to Lululemon and discuss the possibility of mergers and acquisitions. After the news, Lululemon's share price rose 7.1% to $52.77 per share. The share price of Under Armour is relatively stable, with a slight increase of 0.2% to $92.16 per share.

Two years ago, Lululemon and Under Armour were still equal. Competitor But in the next two years, Under Armour showed a strong trend, but Lululemon was in trouble. The founder Chip Wilson quit the board of directors and emptied all holdings.

At present, Under Armour has a total market capitalization of about $19 billion 900 million, while Lululemon's market capitalization is only $7 billion 400 million.

A spokesman for Under Armour declined to comment, but there was internal information that the deal with Lululemon was not within the company's plan.

In September of this year, Lululemon The company's second quarter earnings report dropped from 50.5% in the same period last year to 46.8%. The news also led to a heavy setback in Lululemon's share price. But the company CEO Laurent Potdevin has said that this is only a short-term phenomenon: Lululemon's recent growth rate is not due to price reductions or quality problems. We are creating a platform with potential development and flexible operation to help Lululemon further expand the international market. It is very important.