This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

North Carolina Upstart Takes on Lululemon

The company carries roughly 120 activewear labels and thousands of styles, including boutique lines with names such as Prana, Alo , Zobha and Manduka alongside established outerwear names including Patagonia, O'Neill and Merrell.

Besides selection, the company wants to be known for giving customers sound guidance on choosing the merchandise best suited for their needs.

"A key point of customer service is the guidance," she says. "We want to be able to help our women customers make the right choice when it comes to apparel for the activities that she's in. We just want [her] to have the right choice at the right price point."

Woolman wouldn't release sales figures, but would say revenue leaped 400% last year. By April of 2012, the company had already surpassed that, with plenty of potential to grow, she says.

"I think we are in a unique position because we are independent. We're not just one brand. We're very objective and our customers knows we are unbiased. We can sell a customer" the product that's best suited for them, Woolman says. "Some of our brands, you can't find anywhere else."

ActivewearUSA is also taking advantage of the trend toward online sales.

Forrester Research (FORR - Get Report) estimates that total online retail sales will reach $327 billion by the end of 2016. This holiday season alone is expected to generate $68.4 billion in online sales, a 15% increase over last year and 3% higher than the expected overall annual online retail growth rate, the company says.

"This year's optimism is in large part due to an ever-increasing number of consumers choosing the Web over physical stores and the rise in mobile commerce," says Forrester vice president and principal analyst Sucharita Mulpuru in a recent report regarding holiday sales.

Woolman says there may be an opportunity for ActivewearUSA to open bricks-and-mortar stores, but for now she's sticking to e-commerce.

For retailers that don't make their own clothing, is this a good business model?

Women's activewear represents just over 10% of the overall women's apparel market. Last year, sales in women's activewear totaled $13 billion, an increase of 6.7% from 2010, according to The NPD Group.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FORR $31.73 5.00%
GPS $22.42 -0.55%
LULU $57.30 -0.66%
AAPL $93.70 -0.60%
FB $101.91 0.90%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs