Business Day

Amazon.com is tapping suppliers to make a foray into private-label sportswear.

- Lindsey Rupp and Daniela Wei New York/Hong Kong

Amazon.com is tapping some of the biggest athletic apparel suppliers to make a foray into private-label sportswear, according to people familiar with the matter, setting the stage for further upheaval in an already tumultuous industry.

Makalot Industrial, a Taiwanese vendor that produces clothing for Gap, Uniqlo and Kohl’s Corporatio­n, is making apparel for the Amazon line, a person with knowledge of the arrangemen­t said. Eclat Textile, another Taiwanese supplier, is contributi­ng to the effort as well — a relationsh­ip first noted by SinoPac Securities Corporatio­n analyst Silvia Chiu.

The project is new and longterm contracts have not been signed yet, according to people involved. The manufactur­ers are producing small amounts of products for Amazon as part of a trial, said the people, who asked not to be identified because the effort is not being promoted yet.

Amazon has previously ventured into private-label fashion, offering office clothing, jackets and dresses under names such as Goodthread­s and Paris Sunday. But pushing into activewear would bring fresh competitio­n to some of the world’s biggest athletic brands.

Eclat’s involvemen­t is especially noteworthy as it makes clothing for Nike, Lululemon Athletica and Under Armour and has key expertise in making high-performanc­e sportswear.

Shares of Lululemon fell as much as 4.9%, to $57.55 after Bloomberg reported on Amazon’s sportswear efforts on Friday. Under Armour declined as much as 2.8%. Nike also slipped, though its shares recovered, closing up 0.3% at $50.98.

The move comes as unwelcome news for activewear firms struggling to stand out in a sea of competitio­n and discounts. In September, Nike said it expected sales to fall again this quarter in North America.

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