Better Buy: Lululemon vs. Gap
It aggressively expanded its direct-to-consumer channel, nurtured customer loyalty with its free yoga classes and events, and repeatedly exceeded Wall Street's expectations with its double-digit sales growth. Gap (NYSE: GPS), the parent company of Gap, Old Navy, and Banana Republic, fared worse. It struggled with sluggish mall traffic and intense competition from fast-fashion retailers, while its messy turnaround efforts, abrupt CEO changes, and weak sales growth all disappointed investors.
