She is based in San Francisco and can be reached at. Heather West is Senior Editor for Mergermarket and Dealreporter in the Americas. Given the growing interest by Apple, Alphabet’s Google and others in health and wellness, tech giants are “exactly who we could partner with or take on as an investor,” he adds. Harris says the company frequently turns away approaches from private equity investors as Alo Yoga is focused on a longer-term plan for its brand that could include a public listing in five to seven years. While Alo Yoga is not in need of external financing, it could consider taking on an investor or partner to aid expansion to Asia, or to lend experience in brick-and-mortar or other capabilities. The EU is also on its radar, he adds. Other companies within the holding company include Bella + Canvas, which makes wholesale T-shirts and maternity wear maker Ingrid + Isabel. It also enjoys high margins, helped by the fact that Alo Yoga is vertically integrated, with its own manufacturing facilities.Īlo Yoga is one of several companies under the umbrella of Color Image Apparel, which was started by Harris and DeGeorge in 1992. Sales totaled approximately $40 million between Black Friday and Cyber Monday alone. While Alo Yoga does not disclose financials, Harris says revenue is in the vicinity of $200 million. The leggings are “fuel for our megaphone,” he says. He admits the apparel isn’t cheap but says those who can’t afford to spend more than $100 on leggings can access its brand through other means. “We inspire people to get into the practice,” says Harris, through social media, a free YouTube channel, Alo Moves, its retail stores and other digital outlets. “When we were children, Apple gave us Apple IIe’s to use.” Now it has the largest market cap in the world.” He continues: “We’re doing the exact same thing.” Alo Yoga has taken note, having started a non-profit foundation called Alo Gives that aims to influence children to take up yoga. Its website features free, 5-minute videos to show kids the benefits of yoga and meditation. Meanwhile, yoga apparel for children is expected to grow at a compound annual rate of 7.5% through 2025. “All our competitors focus on fitness, and the products look like you just got back from hitting some tennis balls.” Alo products, Harris says, are designed to be worn from studio to street, and aim to be more fashion-forward. Other major makers of yoga apparel include Lululemon Athletica and Gap’s Athleta brand. Harris says the Alo shopping experience is meant to be immersive, not unlike the way Restoration Hardware “inspires you to get into their designs,” then return home and purchase items online. It is in good company, with reports noting how many digitally native brands are taking advantage of retail weakness and swooping in to open stores. One store under construction on New York’s Fifth Avenue will span 20,000 square feet with a restaurant on the roof. It currently has six physical stores, and by the end of 2020 should have up to seven in Southern California and four or five in New York. “The future is in content,” says co-founder Danny Harris, who does not rule out additional acquisitions.įounded by co-CEOs Harris and Marco DeGeorge, Alo Yoga remains entirely owned by the two executives, who have been friends since youth.
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