NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.

Nike, Inc.

It’s been almost a week since Lululemon’s LULU lackluster Q2 report led to a sharp decline in its stock, hitting a new 52-week low of $162 a share. Although Lululemon was able to exceed Q2 earnings expectations, the leading athletic apparel company slashed its full-year guidance, with a major factor being a $240 million hit from tariffs.
This has raised concerns about the effects of a challenging macro environment on other active-wear apparel companies, including Nike NKE, which is scheduled to report results for its fiscal first quarter on Tuesday, September 30.
Like Lululemon, Nike's stock has been submerged in volatility, climbing off a one-year low of $52 a share but still 19% from a 52-week peak of $90. Furthermore, NKE is more than 50% below its all-time high of $167, with LULU trading 67% beneath its record peaks of $511.
Despite their grizzly stock performances in recent years, let’s see if now is an opportune time to invest in either of these leading apparel retailers for a sharp rebound.
Image Source: Zacks Investment Research
Stale Product Lines & Lululemon’s Surprising Competitors
Offering high-quality activewear and footwear, both brands compete directly in the athletic apparel market, but Lululemon has faced increased competition from unlikely competitors that appear to be disrupting its core business. Simarlar to Nike, Lululemon’s management has admitted that its product lines have become stale and is racing to fast-track new designs.
Centered around its yoga-inspired athleisure gear, Lululemon’s same-store sales fell 4% during Q2 in its core North American market. Notably, several analysts and CNBC contributor Jim Cramer pointed to surprising scenarios/competitors for the disruption, such as more affordable jogger brands offered by Costco COST and The Gap GAP.
While it wasn’t enough to offset domestic concerns, Lululemon's international sales surged last quarter, with China segment sales up 25% and collective markets in the rest of the world up 19%. Still, Lululemon is being impacted by the removal of the de minimis exemption, which previously allowed smaller international shipments to bypass tariff duties. Raising more fears regarding margin pressures and its stale product line, Lululemon’s inventory ballooned 21% year over year to $1.7 billion.
Image Source: Zacks Investment Research
Nike’s Leadership Overhaul & Strategic Pivot
Facing a growing number of competitors outside of Adidas ADDYY, Nike has undergone a leadership change with long-term executive Elliott Hill taking over as President and CEO in 2024. Having more than 30 years of experience with Nike, Hill has refocused the iconic sports brand on its core strengths after a tech-centric strategy misfired.
Pouring resources into digital ads and performance marketing, Nike still experienced a drop-off in digital sales and alienated partners like Foot Locker and Macy’s M in a bid to boost its direct-to-consumer (DTC) reach on Nike.com. It’s noteworthy that Nike’s inventory remained flat during its most recent fiscal fourth quarter, and expects to have a “clean” inventory position by the first half of its current fiscal year 2026.
Aiming to rebuild relationships with third-party vendors, Hill has refocused Nike on wholesale distribution, product innovation, and storytelling campaigns. Plus, Nike has announced plans to shift manufacturing away from China, aiming to reduce exposure to tariffs that could cost up to $1 billion. Stating that the brunt of the tariff impact may be behind it, Nike’s leadership has implemented a four-pronged plan that also includes negotiating with suppliers and retailers to share the cost burden, while cutting corporate costs and selectively raising prices in the U.S.
Nike is better suited to handle Tarriff headwinds
While Lululemon’s immense profitability has wowed investors at times, it doesn’t take Captain Obvious to realize that Nike may be better suited to handle tariff headwinds. Even with Nike facing higher tariff costs, the company is projected to bring in over $40 billion in annual sales for the foreseeable future, compared to Lululemon’s forecast of $11 billion or more.
That said, Nike is generally better positioned to handle tariffs than Lululemon thanks to its supply chain maturity as well. Having a deeper global infrastructure, Nike has diversified manufacturing from multiple countries outside of China, including Vietnam, Indonesia, and India. Lululemon, on the other hand, is more vulnerable to sudden policy shifts and cost spikes as it relies heavily on Canadian and Vietnamese factories.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
Being further along in its turnaround strategy, a rebound looks more likely for Nike stock, as there could still be more short-term weakness ahead for Lululemon shares. Of course, Lululemon will need to overcome tariff uncertainties, but one thing it can learn from Nike as it undergoes an apparel renovation of its own, is that tech is not always a substitute for product relevance, retail relationships, or emotional brand storytelling that resonates with consumers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nike vs. Lululemon: Is Either Apparel Stock Due for a Sharp Rebound?

Key Points
Strong growth in free cash flow could fuel this top e-commerce stock over the next several years.
This e-commerce giant is making it sweet for its target population to start buying online.
This footwear stock is growing rapidly and trading at a discount.
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1. Shopify still going strong
John Ballard (Shopify): Shopify provides a user-friendly platform to set up an online storefront and connect with millions of consumers. With the global e-commerce market valued at $6 trillion and still only comprising around 20% of retail spending, according to eMarketer, Shopify can grow for a long time and deliver market-beating returns to shareholders.
Shopify continues to deliver strong financial results that point to the opportunity ahead. It reported a stellar 31% year-over-year increase in revenue to reach $2.7 billion in its second quarter. Merchants access Shopify's platform through subscriptions that provide recurring revenue for the company, but more than $2 billion of its quarterly revenue came from payment processing and other services that make it easy for merchants to manage their businesses.
The stock's high price-to-sales multiple shows that investors are expecting a lot more revenue growth from the company. But Shopify could also see explosive growth in profits. The company's free cash flow continues to grow faster than the top line, increasing by 31% year over year to $422 million in Q2.
Shopify's free cash flow margin has been trending up the past few years, currently at 16% as of Q2 2025. The company should see rising margins as it rolls out artificial intelligence (AI) tools that increase personalization for consumers. This should drive more purchases across Shopify's merchant base, driving higher gross merchandise volume and revenue.
The consensus analyst estimate on Wall Street calls for Shopify's revenue and free cash flow to roughly double over the next three years. That would put its revenue and free cash flow at more than $16 billion and $3 billion, respectively, in 2027. Shopify's AI-driven growth strategy makes it a smart investment for investors looking to profit off the growing e-commerce market. The stock is up 5,400% since its initial public offering 10 years ago and should keep growing value for a long time.
2. Latin America is shifting to digital e-commerce and banking
Jennifer Saibil (MercadoLibre): MercadoLibre is an e-commerce giant in Latin America, and it continues to expand its platform, gain new customers, and increase its revenue. It's also crushing the market.
It's easy to see why. MercadoLibre is constantly upgrading its platform to offer better value, faster delivery, and new services that are changing the financial landscape in its region.
For example, management is honing in on its value proposition in free delivery, and it lowered the bar for free delivery in Brazil last quarter, as well as reduced shipping costs for suppliers on its fulfillment network. That generated accelerated growth in items sold in the second quarter, which has remained above 30% for eight straight quarters. Total gross merchandise volume increased 37% year over year (currency neutral), and total items sold were up 31%. Unique active buyers increased 25% year over year to hit more than 70 million.
Things are going equally splendidly on the fintech side of things. MercadoLibre has released a full financial services app that complements its e-commerce business, and it's working on opening full digital banks in several of its operating countries, starting with Mexico.
Monthly active user (MAU) growth stayed at 30% in the second quarter, and it was the seventh consecutive quarter of MAU growth at 30% or higher. Assets under management more than doubled, and the total credit portfolio was up 91% more than last year.
On top of that, it operates in a region that's underpenetrated and underbanked. E-commerce penetration is about a decade behind the U.S., and according to the World Economic Forum, 70% of the population is either unbanked or underbanked. That gives it tremendous organic opportunity, and it's working on making the shift happen.
MercadoLibre is still a relatively small company, but it's growing quickly, and it has years of growth ahead.
3. A growth stock on the run
Jeremy Bowman (On Holding): The apparel and footwear sector has been challenging over the last year as a combination of weak discretionary spending and pressure from tariffs have weighed on most sector operators, but one company has stood head-and-shoulders above the rest.
That's On Holding, the Switzerland-based based footwear and apparel company that's best known for its running shoes. On has gained a following thanks to its Cloudtec cushioning, a patented design that's both lightweight and provides for a soft landing.
The numbers illustrate the growing popularity of the brand as it reported 32% revenue growth, or 38.2% in its second-quarter report, to 749.2 million Swiss Francs (CHF).
It also has attractive margins, with gross profit margin improving to 61.5% in the quarter, which is very strong for any footwear or apparel company. And it reported operating income of 92.8 million CHF in the second quarter, or an operating margin of 12.4%.
The company is also expanding beyond running into categories like tennis, with the help of Roger Federer (who is an investor in the company), as well as cross training, casual wear, and apparel.
It's also expanding in Asia, looking to build a formidable presence in China, a market that's been kind to similar brands like Lululemon and Nike.
Right now also looks like a good time to buy On Holding stock because it's pulled back by 29% from its peak earlier this year. While the stock still trades at a premium compared to its peers, that looks deserved considering its superior growth rate. If it can continue to deliver solid growth, the stock should move higher over the coming years.
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Jennifer Saibil has positions in MercadoLibre and On Holding. Jeremy Bowman has positions in MercadoLibre, Nike, and Shopify. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc., MercadoLibre, Nike, and Shopify. The Motley Fool recommends On Holding. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Brilliant Growth Stocks to Buy Right Now

In early trading on Friday, shares of Sherwin-Williams topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. Year to date, Sherwin-Williams registers a 10.0% gain.
And the worst performing Dow component thus far on the day is NVIDIA, trading down 2.1%. NVIDIA is showing a gain of 25.1% looking at the year to date performance.
Two other components making moves today are Nike, trading down 1.8%, and Home Depot, trading up 1.4% on the day.
VIDEO: Dow Movers: NVDA, SHW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Movers: NVDA, SHW

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Quality Factor ETF (Symbol: QUAL) where we have detected an approximate $198.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 286,800,000 to 287,850,000). Among the largest underlying components of QUAL, in trading today TJX Companies (Symbol: TJX) is up about 0.6%, Nike (Symbol: NKE) is up about 0.3%, and KLA Corp (Symbol: KLAC) is higher by about 1.7%. For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average:
Looking at the chart above, QUAL's low point in its 52 week range is $148.3401 per share, with $189.84 as the 52 week high point — that compares with a last trade of $188.90. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Inflow Detected - QUAL, TJX, NKE, KLAC

The NASDAQ 100 Pre-Market Indicator is up 15.58 to 23,430.42. The total Pre-Market volume is currently 116,422,282 shares traded.
The following are the most active stocks for the pre-market session:
Bolt Projects Holdings, Inc. (BSLK) is +1.53 at $4.42, with 19,923,601 shares traded.
NVIDIA Corporation (NVDA) is +0.48 at $171.10, with 6,115,070 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2025. The consensus EPS forecast is $1.16. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Direxion Daily TSLA Bull 2X Shares (TSLL) is +0.26 at $12.54, with 5,451,456 shares traded. This represents a 99.36% increase from its 52 Week Low.
Opendoor Technologies Inc (OPEN) is +0.05 at $5.18, with 4,235,372 shares traded. OPEN's current last sale is 545.26% of the target price of $0.95.
Snap Inc. (SNAP) is +0.0299 at $7.28, with 4,009,399 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $-0.11. SNAP's current last sale is 80.89% of the target price of $9.
NIO Inc. (NIO) is -0.24 at $6.08, with 2,606,380 shares traded. NIO's current last sale is 125.36% of the target price of $4.85.
ProShares UltraPro Short QQQ (SQQQ) is -0.09 at $17.90, with 2,405,224 shares traded. This represents a 7.12% increase from its 52 Week Low.
Nike, Inc. (NKE) is +0.38 at $75.12, with 2,095,846 shares traded. NKE's current last sale is 95.09% of the target price of $79.
Lumen Technologies, Inc. (LUMN) is +0.01 at $4.73, with 1,774,105 shares traded. LUMN's current last sale is 113.29% of the target price of $4.175.
C3.ai, Inc. (AI) is -2.38 at $14.30, with 1,652,341 shares traded. AI's current last sale is 62.17% of the target price of $23.
Keurig Dr Pepper Inc. (KDP) is +0.02 at $29.11, with 1,636,632 shares traded. As reported by Zacks, the current mean recommendation for KDP is in the "buy range".
American Eagle Outfitters, Inc. (AEO) is +3.2001 at $16.82, with 1,386,595 shares traded. AEO's current last sale is 152.91% of the target price of $11.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Sep 4, 2025 : BSLK, NVDA, TSLL, OPEN, SNAP, NIO, SQQQ, NKE, LUMN, AI, KDP, AEO

lululemon athletica inc. LULU is a globally recognized brand specializing in athletic footwear, apparel and sports equipment. LULU views China as a cornerstone of its international growth strategy. The company is rapidly enhancing its foothold in China by introducing stores and increasing brand visibility.
Under its Power of Three x2 strategy, lululemon aims to reach 200 stores in China, with nearly 154 outlets as of the first quarter of fiscal 2025. Beyond store expansion, LULU has been hosting events focused on deepening guest engagement, as well as capitalizing on traditional media assets and brand ambassadors to drive product launches and brand equity. Digitally, the brand taps into platforms like Tmall, WeChat, and Douyin to expand reach and broaden consumer engagement.
In the fiscal first quarter, revenues in Mainland China rose 22% in constant currency, notwithstanding a four-point headwind from the Chinese New Year calendar shift. Comparable sales advanced 8% in the region in the same period. The company is in the early stages of its international journey and remains committed to expanding in China, its key growth market.
On its lastearnings call management had forecast revenues to grow 25-30% in the China Mainland for fiscal 2025. Its unique and innovative offerings in athletic and lifestyle product categories are expected to fuel success. However, tariff implications may hinder growth as management assumed rates include 30% incremental tariffs on China.
Nevertheless, lululemon is adopting mitigating strategies, including tightly managing expenses, driving efficiencies across its supply chain and evaluating pricing. In a nutshell, China is a key growth engine for the company, with expansion in localization, digitization and community engagement.
LULU’s Competition in China
adidas AG ADDYY and NIKE, Inc. NKE are the key companies competing with lululemon in China.
adidas is another sporting goods giant vying for a larger share of the Chinese market. The company is aggressively focused on expanding its presence in China by launching locally relevant product lines and enhancing its brand equity via collaborations and marketing campaigns. Amid a highly evolving geopolitical and macroeconomic environment, adidas has been diversifying its supply chain and adopting mitigating strategies. Initiatives like the “Future City Concept” stores highlight adidas’ ongoing commitment to forward retail strategy. Such strategies are likely to offer resilience and sustainability in the long term.
NIKE has a solid presence in China, which is central to its global growth strategy. The company has strategically invested in China to reinforce its consumer engagement and gain competitive leverage. NIKE’s China business, which is commonly referred to as Greater China, delivered revenues of $1.5 billion in fourth-quarter fiscal 2025, which fell 20% on a currency-neutral basis. Greater China has remained a challenging market, marked by a difficult operating environment and tariff-related headwinds. It noted that the holiday order book is up year over year for fiscal 2026, with growth in North America, EMEA and APLA, partially offset by Greater China.
LULU’s Price Performance, Valuation and Estimates
Shares of lululemon have lost 48% year to date compared with the industry’s decline of 25.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.41X compared with the industry’s average of 11.46X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings implies a year-over-year dip of 2.3% while that of fiscal 2026 shows growth of 7.3%, respectively. The company’s EPS estimate for fiscal 2025 and fiscal 2026 has moved down in the past 30 days.
Image Source: Zacks Investment Research
lululemon stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Adidas AG (ADDYY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

lululemon Banks on China: Can It Deliver Growth in Fiscal 2025?

Key Points
Adidas' stock plummeted 11% on July 30 after an underwhelming Q2 earnings report.
The stock struggled to recover any of those losses in August.
The sportswear company may reprioritize running shoes to help with revenue.
Tariffs have affected clothing companies globally, and Adidas (OTC: ADDYY) is no different. Its shares have dropped by 21% in 2025 as of market close Sept. 2, and after a disappointing second-quarter earnings report on July 30. However, the German shoemaker could have a plan to turn things around.
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Tariff impacts being felt
In its July 30 quarterly report, Adidas CEO Bjørn Gulden shared that the company suffered a multimillion-euro hit in the second quarter due to recent U.S. tariffs on imports implemented by President Donald Trump. The sportswear company fears it could face tariff-related costs of up to 200 million euros ($232 million) over the remainder of 2025, equivalent to 3.4% of its 5.95 billion euros ($6.9 billion) in Q2 revenue. Still, Adidas is optimistic that it will be "a leader in all markets" except North America.
Gulden also warned that consumer goods prices overall may increase in the U.S. because of tariffs. Even though Trump extended tariff moratoriums with China, other pauses expired after Aug. 1, including those for Vietnam and Indonesia, the two countries that supply Adidas the bulk of its goods.
Ironically, China was once the brand's leading manufacturer before it began pivoting to Vietnam within the last decade. If Trump's proposed 46% tariff on goods imported from Vietnam remains in effect, it could have a big impact on Adidas, as well as the businesses of other clothing companies that source their products from the country, which include Nike and Wayfair.
The company faced an 18% drop in share price in July, its worst-performing month this year. Following that, its price fell to $95.35 on Aug. 6, the lowest price of 2025. At this pace, Adidas is in danger of reaching its lowest price since October 2023 as there is uncertainty among investors and the apparel company itself due to tariff and sales concerns.
Will running shoes save Adidas' stock?
Adam Cochrane, an analyst at Deutsche Bank AG, recently described running shoes as the most "exciting category" of footwear for market growth. He expects Adidas and fellow German sportswear brand Puma to redirect focus toward this category due to the increasingly high demand, as they offer comfort and style. Adidas has already matched those predictions, having released two running shoes this year: the Adizero Adios Pro 4 in January and the Adidas Boston 13 in May.
Like Adidas, Puma has suffered serious losses this year. It reported a 2% decrease in sales in its Q2 earnings report on July 31. It also lowered its outlook for the rest of 2025 compared to its Q1 prediction. U.S. stock prices for the brand have plummeted by roughly 50% this year.
Waiting to see
With tariffs likely to continue pressuring imports to the United States, investors will be watching to see if Adidas raises prices for consumers. Once investors understand how Adidas plans to manage the increased cost of doing business in the United States, they'll be able to make a more informed decision about the stock's long-term value within their portfolio. But for now, investors should wait for the next earnings report before purchasing shares.
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Adé Hennis does not own shares of the companies mentioned in this article. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Wayfair. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Adidas Stock Turn Things Around?

Key Points
Lululemon Athletica has seen its stock take a hit this year, losing nearly half of its market value, while the broader market has increased by about 10%.
People are worried about slower sales in North America and China, pushing the stock to a five-year low.
Lululemon's business outside of China is picking up speed, and that could be what it needs to reignite revenue growth and lift margins.
Lululemon (NASDAQ: LULU) is a Vancouver-based athleisure brand whose claim to fame arose from its best-selling women's yoga pants. Today, it's much more than that. Lululemon sells a broad range of premium apparel and accessories through its retail stores, e-commerce platform, and brand partnerships across a broad variety of end customers.
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Slowdown in the Americas
So, why has the stock been so weak? First, Lululemon's main market, North America (especially the U.S.), is facing challenges.
In the first quarter of 2025, U.S. revenue grew just 2%, and comparable sales fell 1%. The reason given by the company was lower traffic and cautious shoppers cutting back on nonessential spending. This is a significant shift from the past, when the business saw double-digit growth, with annual revenue rising from $8.1 billion in 2023 to $10.6 billion in 2025, a more than 10% annual increase.
More competition and the softer economic backdrop are hurting performance in the U.S., which used to be the primary driver of income (and growth) for the company. The U.S. accounts for over 70% of Lululemon's sales and almost all of its operating profit.
Headwinds in China, too
China, once a shining star for Lululemon, has also raised concerns. The number of stores in China grew from 10 in 2018 to over 130 by 2024, and sales reached $1 billion in 2024, with double-digit growth. However, recent numbers show slower growth.
In the first quarter of 2025, revenue in China rose 22% (excluding currency changes), which is good but moderating from the 30% growth rate posted in 2024. Some investors are concerned that China's economic problems, along with possible tariffs from sourcing in Vietnam, could reduce profits in this fast-growing area.
Punished by the market
These concerns have contributed to a lower valuation for Lululemon, with the stock trading at 14 times its expected future earnings, well below the apparel industry's 27 ratio (including peers such as Nike, Adidas, VF, and Under Armour) and a far cry from the 40 forward earnings multiple it once traded at! This means investors can now buy a dollar of expected earnings from Lululemon at around half the price of its peers and just over a third of what they paid two years ago.
International: The hidden gem
The compression in Lululemon's multiples would suggest that the business is now a mature, low-growth retailer.
However, while Wall Street fixates on sales in North America and China, Lululemon's broader international business is quietly picking up steam. In the first quarter of fiscal 2025, revenue in its Rest of World (excluding China) segment grew 17% in constant currency, far outpacing North America's sluggish performance.
The company is aggressively expanding its footprint in Europe and the Asia-Pacific region, with new store openings planned for Italy, Denmark, Belgium, Turkey, and the Czech Republic in 2025. These moves build on Lululemon's strategy to diversify revenue streams and reduce reliance on the U.S. market. With only about 20% of sales currently coming from outside the U.S. and Canada, there's massive room for growth in these underpenetrated markets.
International expansion isn't just about opening new stores; it's about tapping into new customer bases and driving higher margins. Lululemon's premium brand resonates strongly in markets like Europe, where consumers value quality and performance in athletic wear.
Margins are relatively lower in this business line today, with an operating profit margin hovering around 25% versus the North American business, which is pushing near 40%. This is another reason some investors are overlooking this segment. However, as they gain operating scale, these margins have (and will) trended meaningfully upward.
Skeptics might argue that international expansion carries risks. Execution challenges, such as adapting to local tastes or navigating regulatory hurdles, could trip up growth.
But Lululemon has a track record of navigating these waters. Its vertically integrated business model -- controlling design, manufacturing, and retail -- gives it flexibility to adapt quickly.
Financial powerhouse
Inspecting the financials, I see a lot to like. Returns on invested capital (ROIC) consistently exceed 20% and returns on equity (ROE) eclipsed 40% last year. This means the company is consistently and efficiently generating strong earnings.
To top it off, Lululemon's balance sheet remains rock-solid, with strong cash flow and no significant debt, providing the financial muscle to self-fund expansion without stretching itself thin.
Is the stock a buy?
The market's pessimism has pushed Lululemon's stock down to a tempting entry point at just 14 times earnings. While investors remain fixated on North American headwinds and China's slowdown, they're missing the bigger story: Lululemon's global growth runway is far from tapped.
For patient investors, this premium brand at a discount could be today's overlooked stock that turns into tomorrow's long-term winner.
Should you invest $1,000 in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $654,759!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,799!*
Now, it’s worth noting Stock Advisor’s total average return is 1,042% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Justin Ho has positions in Lululemon Athletica. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Nike. The Motley Fool recommends Under Armour. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lululemon's Hidden Growth Engine: Why International Expansion Could Spark a Comeback

Key Points
Roblox has a brilliant strategy that allows it to capitalize on hot trends in the interactive entertainment industry.
FuboTV is about to get a major injection of new subscribers after announcing a major deal with Disney's Hulu.
Tech stocks aren't the only way to make money in this bull market. Roblox (NYSE: RBLX) and FuboTV (NYSE: FUBO) are two notable growth stocks in digital entertainment that have seen their share prices soar 120% to 170%, respectively, year to date.
Do these stocks have room to run? Read on to learn what has caused these stocks to take off, and whether they are worth buying at these highs.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
1. Roblox
Roblox stock has skyrocketed in 2025 after reporting strong growth on its platform, resulting from new game experiences and improvements to the user experience from artificial intelligence (AI). The stock took off in March following the release of Grow a Garden, which went viral, attracting millions of users per day in the weeks following launch. This release validates Roblox's ability to leverage its user-created content to capitalize on hot trends in interactive entertainment.
This release builds on the momentum Roblox was experiencing entering the year. For the second quarter, it reported a 21% year-over-year increase in revenue, while bookings (a non-GAAP adjusted measure of revenue) grew 51% year over year to more than $1.4 billion.
Roblox is aiming to capture 10% of the global gaming market over the long term, which could grow its annual revenue to nearly $20 billion, up from its trailing-12-month revenue of $4 billion. Part of the company's strategy is rolling out AI features to make creating experiences easier. This would lead to a steady flow of new content to support growth.
Roblox also has an opportunity to grow advertising revenue over the long term, as major brands seek exposure to a vibrant platform with a young demographic. Nike, Amazon, and Gucci are just a few of the brands that are on the platform. There's also the potential to build new revenue streams from monetizing its AI features over the long term.
There are a lot of positives to look forward to if you're already invested in Roblox stock, but with the shares trading at a high valuation after the recent surge, new investors shouldn't feel like they are missing out. The stock's current price-to-sales multiple of 20 has doubled year to date and is stretched well above its previous three-year average of 10 times sales. Investors will likely see the stock offer a better value point down the road to start a position.
2. FuboTV
Shares of FuboTV have nearly tripled this year after announcing a deal with Walt Disney to combine with Hulu Live TV, and therefore, significantly expand Fubo's subscriber base. The deal is expected to close in Q4, although it still needs to pass regulatory approval.
The deal is a big win for FuboTV given the competitive intensity of the live TV streaming market. Between 2020 and 2022, FuboTV reported very high growth in revenue, but since 2023, growth has notably slowed. Competition from Alphabet's YouTube TV and other platforms could be part of the problem. However, the market is expected to grow 28% annually to $256 billion by 2032, according to Custom Market Insights.
FuboTV said its revenue declined 2.8% year over year in Q2. This is after reporting a 25% year-over-year increase in the year-ago quarter. While part of the decline was due to the loss of certain ad-related content from other content providers, its North American subscribers also fell 6.5% year over year, indicating a highly competitive market.
But Fubo's challenges are why investors are bullish on the Hulu combination. It will expand Fubo's subscriber base to 6.2 million in North America, up from 1.35 million North American subscribers reported in Q2. The combination with Hulu Live TV will significantly expand its reach and revenue opportunities.
Wall Street analysts expect Fubo's revenue to grow at a 26% annualized rate to reach $5.1 billion by 2029. The average price target among analysts that cover the stock is pointing to 31% upside from the current $3.45 share price.
However, nothing is set in stone as the Department of Justice (DOJ) is currently reviewing the deal for antitrust violations. Until that review is completed and the deal closes, the stock will likely continue trade around the current share price. The additional content and subscriber reach will certainly lift FuboTV's prospects, but the streaming landscape is still fluid with competition from Netflix, Amazon, and YouTube TV. This still makes FuboTV's long-term profitability uncertain, which could limit upside in the stock.
Should you invest $1,000 in Roblox right now?
Before you buy stock in Roblox, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Roblox wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,639!*
Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Netflix, Nike, Roblox, Walt Disney, and fuboTV. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Growth Stock Alert: Are You Missing Out on These 120% Gainers?

Key Points
Lululemon stock is trading 60% below its 52-week high after posting a 7% revenue increase last quarter.
Cava stock is down big this year, but analysts expect earnings per share to triple as it opens more restaurant locations.
The tech-driven bull market has driven up valuations for tech stocks, but this could present long-term investors attractive buying opportunities for top stocks in the consumer goods space.
Lululemon Athletica (NASDAQ: LULU) and Cava Group (NYSE: CAVA) are trading 60% off their previous highs, but analysts on Wall Street see value. The average price target for these stocks is at least 33% above where they currently trade.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here's why they are down and might be worth buying ahead of a potential rebound in 2026.
1. Lululemon Athletica
Lululemon Athletica has been a growing brand in the athletic wear market for two decades, but the company is struggling with slowing sales growth and higher costs from tariffs. The stock trades well below its 52-week high of $423.
After three years of higher grocery prices and mortgage rates, consumers are pulling back on discretionary spending. This is not specific to Lululemon, but a lot of consumer brands are taking a hit. Starbucks and Nike have experienced sales pressure over the last year. After growing revenues by double-digit rates a year ago, the headwinds have finally caught up to Lululemon with sales up just 7% year over year in the most recent quarter.
Tariffs have compounded the company's challenges, yet despite this, the company expects revenue growth to remain stable next quarter, rising between 7% to 8% year over year. It also expects full-year earnings per share to come in between $14.58 to $14.78.
Apparel is highly competitive, yet that hasn't prevented Lululemon from building a strong brand over the last 20 years. It's one of the most profitable apparel brands, generating $1.8 billion in profit on $10.8 billion of revenue over the last year, which is an above-average margin of 17%.
Analysts on Wall Street have an average price target of $273 on the shares, representing upside of 33%. The stock does appear undervalued at these levels. Using management's full-year guidance, the shares trade at 14 times forward earnings. This is the lowest valuation the stock has traded in years. Just two years ago, investors were paying around 30 times earnings to own a piece of Lululemon's future growth.
Obviously, sentiment around the consumer goods space will dictate when the stock rebounds. But there is a catalyst that may be coming in the form of interest rate cuts by the Federal Reserve that could provide some relief for consumers and potentially put Lululemon and other discounted retail stocks on a path of recovery over the next year or so.
2. Cava Group
Cava stock rocketed to a high of $172 last year before falling to its current $68 share price. A combination of an extremely high valuation on the stock entering 2025 combined with weak consumer spending trends magnified the stock's recent slide.
Cava is capturing a big opportunity. It is meeting demand for a Mediterranean-based restaurant concept in the fast-casual market. It is still growing at robust rates, with total revenue up 20% year over year in the most recent quarter. But slowing customer traffic, where same-restaurant sales growth slowed to 2.1% year over year, has sent the stock lower.
However, one silver lining in the recent quarterly financial report suggests sales growth could already be in the process of picking up again. Management indicated that same-restaurant sales were reaccelerating toward the end of the last quarter and beginning of the current quarter.
Cava is still investing in a huge market for Mediterranean food. It opened a net 16 new restaurants last quarter. Management still sees room for 1,000 restaurants by 2032, which would more than double its locations from the current 398.
The stock could be bottoming out, as analysts' average price target is currently $92, implying upside of 36%. The stock looks expensive at a forward P/E topping 120 at the time of writing. This is based on the Wall Street consensus earnings estimate of $0.56 for this year. But Cava is a highly profitable restaurant business. As it continues to open new locations and achieve greater scale, analysts expect Cava's earnings to nearly triple over the next four years to $1.57.
From a price-to-sales (P/S) valuation perspective, Cava is more reasonably priced. The stock traded around 15 times sales at the start of the year but now trades at a 7.5x multiple. That's still a rich valuation for a restaurant stock, but it's justified considering Cava is still in the early innings of its nationwide expansion and is already producing a healthy profit for a restaurant business.
The lower valuation and continued execution toward its long-term strategy raise the odds of a rebound next year. If the stock continues to trade at the current P/S multiple and meets next year's consensus revenue estimate for $1.4 billion, the stock would rise 36%.
Should you invest $1,000 in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,639!*
Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc., Nike, and Starbucks. The Motley Fool recommends Cava Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	22.35 18.21
Price/Sales	2.38 0.65
P/B	8.34 1.76
P/FCF	16.54 14.46

Indicator	TTM Median
ROE	37.37 15.91
ROA	14.09 5.60
ROI	23.43 9.40
Net Worth	117.16 0.88
Quick Ratio	1.58 0.91
Current Ratio	2.36 1.44

Indicator	TTM Median
Net Profit Margin	10.60 6.42
Operating Margin	11.83 8.93
Gross Margin	44.84 38.48
Return on tangible equity	38.76 23.67

Indicator	TTM Median
EPS	0.78 0.44
EPS Forecast	0.63 0.41
Revenue	11.59B 182.00M
Gross Profit	5.26B —
EBITDA	1.39B —

Nike, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue