This apparel company is well-known for yoga pants and appealing to women. Could the company’s entry into golf and men’s apparel get a push with the addition of a new brand ambassador?
What Happened: Lululemon Athletica Inc (NASDAQ:LULU) recently launched a line of golf apparel in its latest initiative to grow beyond just yoga pants.
It was revealed this week the company will feature two-time NBA Champion JR Smith as a brand ambassador.
Smith played 977 NBA games for several teams and averaged 12.4 points, 3.1 rebounds and 2.1 assists per game. He also played in 140 NBA playoff games averaging 10.7 points per game and helping the Cleveland Cavaliers and Los Angeles Lakers win championships.
Smith is now a freshman at North Carolina A&T and a walk-on for the school’s golf team. Smith, who went straight from high school to the NBA, is the first male golf endorser for Lululemon. He signed a name, image and likeness deal with Lululemon through Excel Sports Management, a representation firm that Smith signed with after enrolling in college.
Smith made more than $90 million in his 16 years in the NBA. The NBA player turned golfer has attracted attention from golf companies and this could be the first of several deals.
Smith will not be able to promote Lululemon at NCAA-sanctioned events but will appear in advertisements and social media promotions.
Related Link: NCAA Athletes Can Now Make A Profit Off Their NIL: What To Know And Some Early Deals
Why It’s Important: Lululemon announced it was entering the footwear market earlier this year with its first shoe, a women’s running shoe called Blissfeel released in March. A men’s footwear brand is expected to launch in 2023.
The signing of Smith could help increase brand awareness for Lululemon and help push the company into the golf sector and also appeal more to men. The brand has been known best for women’s apparel.
Moving into new sectors and signing additional brand ambassador deals could also help Lululemon take on the giants Nike Inc (NYSE:NKE) and Under Armour Inc (NYSE:UA)(NYSE:UAA) in the apparel and footwear sectors.
Lululemon also got attention Monday with Scott Fauble crossing the Boston Marathon finish line as the top American runner to place in the race. Fauble, who is not endorsed by Lululemon, wore a Lululemon singlet he bought himself to wear during the race.
Lululemon reported third-quarter revenue of $1.5 billion, up 30% year-over-year, in the most recent quarter.
LULU Price Action: Lululemon shares are up 3.84% to $404.46 on Tuesday morning at publication.
Photo: Robert Ruggiero on Unsplash
