Amazon is coming for Nike, Lululemon, and Under Armour with its own sportswear brand made by the same company
The online giant has been rumored to be making its own sportswear line for months, as Business Insider reported back in January.
The two companies it is reportedly in talks with to make it, however, are both Taiwanese sportswear manufacturers: Makalot Industrial and Eclat Textile.Makalot makes clothes for Gap, Uniqlo, and Kohl's, while Eclat creates apparel for Lululemon, Nike, and Under Armour.
The companies have already created small batches of clothing, but no long-term contract has yet been signed, reports Bloomberg.
This indicates that Amazon could be serious about its new sportswear endeavor, and it could be gearing up for an entry into the high-performance category. Amazon previously announced a large gear-up for its other private-label clothing brands, which range from men's dress shirts to women's dresses.
An Amazon spokesperson declined to comment on the Bloomberg report, calling it "rumors and speculation."
Amazon would be entering the sportswear market at a precarious time. The largest seller in the world, Nike, saw sales fall in its latest quarter and predicts another fall in its next. Under Armour cut its sales forecast for the year. Lululemon has fared better, but its long-term outlook isn't 100% certain, investors say.
Shares of Lululemon and Under Armour fell moderately on the news. Nike did not move on the news.