Ronald Friedman, Co-Leader, Retail/Consumer Products Industry Group, Quoted in Fortune Article "Lululemon Family Launches "Technical Cashmere" Brand — and It's Selling"
Fortune
By John Kell
Excerpt:
Using its success with workout wear as a model, the Lululemon founder’s family launched Kit and Ace, a brand devoted to user-friendly luxury wear.
The family behind Lululemon has got what it hopes will be a big second act: take what’s great about workout wear and apply it to luxury clothes.
Kit and Ace is a small apparel and retail brand that was founded last year by Shannon and J.J. Wilson–the wife and son of Lululemon (LULU) founder Chip. Based in Vancouver, Canada, the company produces sweaters and pullovers that are made of “Qemir,” a “technical cashmere” fabric that can be tossed into a washer and dryer without risk of shrinkage or pilling. No expensive dry cleaning needed.
Already, Kit and Ace is seeing some early success. The stores it has opened since August are doing better than expected, according to the founders, though the privately-held apparel company won’t disclose total sales figures.
Ron Friedman, a retail consultant for accounting and advisory firm Marcum LLP, touts the Kit and Ace strategy as the “future of apparel.” Gross profit margins can reach between 65% to 75% with the business model Kit and Ace is pursuing, as opposed to margins that can range from 20% to about 55% when sold through mass retail chains.
“[Kit and Ace] is a great looking line,” Friedman said. “I think they are creating something that should be very exciting.”
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