Lululemon Athletica inc. (LULU - Get Report) , for instance, saw its stock drop nearly 4% to $57.60 between 3:00 p.m. and 3:20 p.m., when the story broke. Shares of Dicks Sporting Goods, Inc. (DKS - Get Report) also tumbled about 1.5% in the timeframe, while Under Armour Inc. (UAA - Get Report) dropped 2%. Nike, Inc. (NKE - Get Report) and Adidas AG (ADDYY) were largely unchanged.
Amazon tapped two Taiwanese suppliers to explore a private-label athletic apparel line, Bloomberg reported. The manufacturers include Makalot Industrial Co., a vendor that produces offerings for Gap Inc. (GPS - Get Report) and Kohl's Corp. (KSS - Get Report) , as well as Eclat Textile Co., which makes products for Nike, Lululemon and Under Armour.
The sportswear line is a new project and long-term contracts have yet to be signed, sources told Bloomberg. The two suppliers will be making a small number of products as a trial run.
Amazon boasts private-label products across dozens of categories, including snacks, electronics, baby wipes, home decor and multiple fashion lines. For some of these products, Amazon is already stealing market share, according to a November 2016 report from data analytics platform 1010data. For instance, it's AmazonBasics brand is responsible for one-third of all online battery sales, seeing 93% year-over-year growth.
Meanwhile, Nike and Under Armour have not done so well in recent quarters. Nike lowered its sales forecast last month and even offered an unprecedented 40%-off promotion on Groupon, a sign of trouble, analysts said.
Guess this means athleisure is nowhere close to its peak.
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