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Activewear has been having a moment for quite some time now. Just look at brands like Lululemon and Athleta.
But Alo Yoga, the workout brand popular with celebrities, might be well on its way to that level with a potential investment that values the retailer at $10 billion, Reuters reported.
Color Image Apparel, the parent company of the brand that has often been seen on celebrities including Rosie Huntington-Whiteley and Gisele Bündchen, is reportedly working with investors including private equity firms and sovereign wealth funds to work out a deal that could include selling a stake in the company, sources told Reuters.
It’s also possible that Alo Yoga founders Danny Harris and Marco DeGeorge could decide against any deal at all, they said.
Either way, it’s a clear indication that the activewear industry is pretty darn healthy.
The global workout clothes market was estimated to be worth $210.8 billion in 2022 and is likely to reach $384.8 billion by 2032, per Future Market Insights.
The boom in the sector can be attributed to a variety of factors including the rising popularity of on-demand workouts and an undeniable interest in athleisure as the pandemic prompted people to rethink dress codes.
- Athleisure orders have increased 84% since 2020, according to Forbes.
Arguably Alo’s biggest competitor, Lululemon, earned $8 billion in 2022 and is estimated to reach $12.5 billion in sales by 2026.