Alo sale could set up IPO or takeover, Reuters says

SanMar agreed in May to buy Bella+Canvas, and the deal could leave Alo as a more focused high-end athleisure brand with a simpler pitch to investors and suitors. The sale has not closed, but the separation would pull a wholesale T-shirt business out of the founders’ apparel empire and put more attention on Alo, the label that now carries the bigger cultural pull.

Danny Harris and Marco DeGeorge started the business in 1992 as a garage screen-printing operation under Color Image Apparel, then launched Alo in Los Angeles in 2007. Alo has since grown to more than 150 global stores and expanded beyond activewear into skincare, footwear and beauty. Forbes estimated in April 2025 that Color Image Apparel’s revenue was nearly $2 billion, with Alo making up the vast majority of that total in recent years. In late 2023, the founders also explored outside investment with Moelis, and some reports put the business at a potential valuation of about $10 billion.

That history helps explain why a Bella+Canvas divestiture matters. Neil Saunders of GlobalData Retail has described Alo as a mature business, and companies at that stage often end up public, sold, or built out with another complementary brand. A cleaner structure would make Alo easier to value and easier to explain to Wall Street, which is exactly the kind of setup that can invite a public offering or a takeover bid.

For Lululemon employees, the competitive read is more immediate. A simpler Alo could mean a stronger rival with more flexibility to fund store growth, product experimentation and marketing aimed at the same premium shopper Lululemon wants in its stores, community events and brand ecosystem. That pressure lands on educators and store leaders first, especially when guests compare fit, fashion credibility and brand image on the floor.

The backdrop at Lululemon has already been rougher than in past years. The company forecast 2026 revenue and profit below analysts’ estimates in March, then cut its annual profit forecast in June, sending shares lower. It also added former Levi Strauss chief executive Chip Bergh to its board amid a proxy fight. Against that setting, a more streamlined Alo would not just be another private-label story. It would be a better-financed competitor with a cleaner path to grow, raise capital or get bought.

SanMar said Bella+Canvas will keep operating independently, and executive vice president Megan Spire will stay on to lead the brand. For Alo, the deal looks less like an ending than a reset that could make the company harder for rivals to ignore.