It seems that Yoga pants are starting to cut into the bottom line of Levi's
The Daily Ticker has reported that teens are favoring yoga pants over
jeans by a big margin, but Levi's President & CEO Chip Bergh says
the trend is also popular among women, in general, and that's hurting
his company.
"We're
actually losing consumption to yoga pants," says Bergh. "What used to
be a premium jeans occasion for women is now socially acceptable to be a
yoga pants occasion, and shame on us as category leaders for letting
that happen."
Well yoga pants look comfortable from the get-go instead of having to be broken in like jeans normally do. In fact I would wear sweat pants (the male equivalent to yoga pants) to work if it were socially acceptable because they are just that much more comfortable than jeans.
In fact this article might be a good idea to do some looking into Lulumon as a stock. I mean the stock is near a 52-week low so you are buying it at a discount. They have great margin and a brand that many women enjoy. They have screwed up with product recalls and PR mistakes so that is part of the reason why they are at this point.
The only problem I see is that their moat if pretty small. What keeps the Gap or Forever 21 from rolling out some knock-off yoga pants? I know cash conscious women would rather have a bunch of different colors instead of just one expensive pair of black yoga pants. So that premium margin will shrink as more competitors get into the market.
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