Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.

Under Armour, Inc.

lululemon athletica inc. LULU, once an unstoppable growth engine, is facing an inflection point. After years of rapid expansion and tripling revenues within six years, the company is encountering both internal and external headwinds that are testing its adaptability. In the second quarter of fiscal 2025, lululemon’s earnings per share exceeded expectations, but revenues fell short, prompting a downward revision of full-year guidance. While international markets, particularly China, continue to deliver double-digit gains, the U.S. business, which accounts for the bulk of revenues, has lost momentum amid sluggish demand and shifting consumer preferences.
To reignite growth, lululemon is leaning on fresh product innovation after acknowledging that its lounge and social lines have grown “too predictable.” Under global creative director Jonathan Cheung, the brand plans to raise new styles to 35% of its assortment by spring 2026, with launches like Loungeful and Big Cozy blending performance and fashion. lululemon is also enhancing its “Science of Feel” platform and using AI-driven design to speed up product development and better respond to consumer trends.
Staying ahead in a crowded activewear market won’t be easy for lululemon. Rising competition, macroeconomic pressures and higher tariffs have strained margins, challenging the brand’s ability to balance pricing with its premium image. Still, its loyal customer base, strong global momentum and renewed focus on innovation suggest resilience. The coming year will test whether its refreshed product strategy can reignite excitement and reaffirm its leadership in premium performance apparel.
LULU’s Rivals: NIKE & Under Armour’s Brand Strength
In the competitive athletic apparel and footwear market, NIKE Inc. NKE and Under Armour UAA are both powerful players striving to capture the attention of performance-driven consumers while adapting to shifting market dynamics.
NIKE continues to reign as the powerhouse of the global athletic apparel industry, leveraging its unmatched brand equity, expansive distribution network and relentless focus on innovation. The company’s scale and marketing prowess enable it to command strong consumer loyalty while driving growth across both performance and lifestyle categories. Its focus on digital transformation and direct-to-consumer expansion has strengthened margins and deepened customer engagement, particularly through its NIKE App ecosystem and membership platform.
Under Armour, meanwhile, remains in a rebuilding phase as it works to regain market relevance and strengthen brand perception after years of inconsistent growth. The company continues to emphasize its performance heritage, aiming to reconnect with core athletes and reestablish authenticity in training and sports categories. Recent leadership changes and renewed discipline around inventory and pricing have helped stabilize operations, though challenges persist in driving consistent consumer demand and differentiating itself from larger rivals like NIKE and lululemon.
The Zacks Rundown for LULU
lululemon’s shares have plunged 52.6% year to date compared with the industry’s decline of 20.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.95X, higher than the industry’s 16.81X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 11.9%, whereas the consensus mark for fiscal 2026 implies growth of 1.12%. Earnings estimates for fiscal 2025 and 2026 have moved downward in the past 30 days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

New Categories, Old Challenges: Can lululemon Stay Ahead of the Curve?

For Immediate Release
Chicago, IL – October 9, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: lululemon athletica inc. LULU, NIKE Inc. NKE and Under Armour UAA.
Here are highlights from Wednesday’s Analyst Blog:
Can lululemon's Brand Power Outrun a Slowing Activewear Market?
lululemon athletica inc. remains a formidable force in premium activewear, even as the broader market softens. In second-quarter fiscal 2025, the company reported earnings per share of $3.10, beating estimates, while revenues rose 6.5% year over year to $2.53 billion amid slowing U.S. demand. While international markets, especially China, continue to post double-digit gains, U.S. performance has stagnated due to weaker consumer spending and a saturated athleisure segment. Still, lululemon's strong brand loyalty, with nearly 30 million members, underscores the company's enduring consumer appeal.
lululemon's challenge lies in balancing innovation with relevance. Core casual lines such as Scuba and Softstreme have become "too predictable," prompting plans to refresh designs and increase new styles from 23% to 35% by spring 2026. The company's new creative leadership aims to restore momentum by accelerating its design cycle, leveraging its "Science of Feel" innovation platform, and introducing new collections like Loungeful and BeCalm. These moves highlight lululemon's intent to stay ahead of competitors in both performance and lifestyle apparel.
Despite near-term pressures from tariffs and higher costs, lululemon's focus on innovation, agility and global expansion positions it for long-term resilience. The brand's ability to command loyalty and consistently reinvent its offering may well enable it to outpace the slowdown and reaffirm its dominance in activewear's evolving landscape. As the company strengthens its product pipeline and speeds up market responsiveness, it is laying the groundwork for a stronger rebound in 2026. Ultimately, lululemon's blend of innovation, brand equity and global reach could ensure it remains the benchmark in the premium activewear industry.
LULU's Rivals: NIKE & Under Armour's Brand Strength
In the competitive athletic apparel and footwear market, NIKE Inc. and Under Armour are both powerful players striving to capture the attention of performance-driven consumers while adapting to shifting market dynamics.
NIKE continues to dominate the global athleticwear market with its unmatched brand recognition, innovation and digital strength. Despite softer consumer demand in certain markets, the company's strategic focus on direct-to-consumer sales and digital engagement has helped maintain its leadership position. NIKE's deep investment in technology-driven personalization and sustainability through initiatives like its Nike App ecosystem and circular design programs has reinforced its emotional connection with consumers.
Under Armour is working to regain its footing after years of inconsistent performance. The company's recent focus on performance authenticity and core athletic wear has revitalized its brand identity, distancing it from overextension into fashion-oriented segments. Under Armour is emphasizing efficiency, inventory discipline and international expansion, especially in Europe and Asia, to drive steady growth. Its renewed product innovation, particularly in training and running categories, aims to reconnect with athletes seeking high-performance gear.
The Zacks Rundown for LULU
lululemon's shares have plunged 54.7% year to date compared with the industry's decline of 27.3%.
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.32X, higher than the industry's 11.68X.
The Zacks Consensus Estimate for lululemon's fiscal 2025 earnings implies a year-over-year decline of 11.9%, whereas the consensus mark for fiscal 2026 suggests growth of 1.12%. Earnings estimates for fiscal 2025 and 2026 have moved downward in the past 30 days.
LULU currently carries a Zacks Rank #5 (Strong Sell).
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights lululemon athletica, NIKE and Under Armour

lululemon athletica inc. LULU remains a formidable force in premium activewear, even as the broader market softens. In second-quarter fiscal 2025, the company reported earnings per share of $3.10, beating estimates, while revenues rose 6.5% year over year to $2.53 billion amid slowing U.S. demand. While international markets, especially China, continue to post double-digit gains, U.S. performance has stagnated due to weaker consumer spending and a saturated athleisure segment. Still, lululemon’s strong brand loyalty, with nearly 30 million members, underscores the company’s enduring consumer appeal.
lululemon’s challenge lies in balancing innovation with relevance. Core casual lines such as Scuba and Softstreme have become “too predictable,” prompting plans to refresh designs and increase new styles from 23% to 35% by spring 2026. The company’s new creative leadership aims to restore momentum by accelerating its design cycle, leveraging its “Science of Feel” innovation platform, and introducing new collections like Loungeful and BeCalm. These moves highlight lululemon’s intent to stay ahead of competitors in both performance and lifestyle apparel.
Despite near-term pressures from tariffs and higher costs, lululemon’s focus on innovation, agility and global expansion positions it for long-term resilience. The brand’s ability to command loyalty and consistently reinvent its offering may well enable it to outpace the slowdown and reaffirm its dominance in activewear’s evolving landscape. As the company strengthens its product pipeline and speeds up market responsiveness, it is laying the groundwork for a stronger rebound in 2026. Ultimately, lululemon’s blend of innovation, brand equity and global reach could ensure it remains the benchmark in the premium activewear industry.
LULU’s Rivals: NIKE & Under Armour’s Brand Strength
In the competitive athletic apparel and footwear market, NIKE Inc. NKE and Under Armour UAA are both powerful players striving to capture the attention of performance-driven consumers while adapting to shifting market dynamics.
NIKE continues to dominate the global athleticwear market with its unmatched brand recognition, innovation and digital strength. Despite softer consumer demand in certain markets, the company’s strategic focus on direct-to-consumer sales and digital engagement has helped maintain its leadership position. NIKE’s deep investment in technology-driven personalization and sustainability through initiatives like its Nike App ecosystem and circular design programs has reinforced its emotional connection with consumers.
Under Armour is working to regain its footing after years of inconsistent performance. The company’s recent focus on performance authenticity and core athletic wear has revitalized its brand identity, distancing it from overextension into fashion-oriented segments. Under Armour is emphasizing efficiency, inventory discipline and international expansion, especially in Europe and Asia, to drive steady growth. Its renewed product innovation, particularly in training and running categories, aims to reconnect with athletes seeking high-performance gear.
The Zacks Rundown for LULU
lululemon’s shares have plunged 54.7% year to date compared with the industry’s decline of 27.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.32X, higher than the industry’s 11.68X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 11.9%, whereas the consensus mark for fiscal 2026 suggests growth of 1.12%. Earnings estimates for fiscal 2025 and 2026 have moved downward in the past 30 days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can lululemon's Brand Power Outrun a Slowing Activewear Market?

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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
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

What Cybersecurity, Shoes, and Homebuilders Tell Us About Change

lululemon athletica inc.’s LULU growth story has long been tied to its ability to consistently deliver innovative products that blend performance and lifestyle appeal. In first-quarter fiscal 2025, management emphasized that product newness remains central to the company’s strategy, with recent launches like Daydrift trousers, BeCalm and Glow Up leggings resonating strongly with consumers. The extension of its iconic Align franchise through the new No Line style also saw strong sell-throughs, reinforcing lululemon’s ability to refresh core items while simultaneously introducing new categories. This dual approach, innovating within existing franchises while creating new ones, positions the brand to defend its share in the premium activewear market.
Beyond design, lululemon’s product innovation extends to its expansion across five key activities: yoga, running, training, golf and tennis. Recent product drops, such as Fast & Free running shorts for men and performance-driven ultramarathon apparel for women, showcase how the brand continues to build credibility in high-performance sports while appealing to lifestyle wearers. Importantly, consumer response has been balanced across both lifestyle and performance categories, a sign that the company is successfully broadening its relevance beyond yoga while staying authentic to its technical roots.
However, innovation alone may not fully offset external pressures. In the United States, where traffic remains soft and consumers are cautious, comps rose only 1% despite strong product sell-outs. This suggests that while lululemon’s newness is resonating, macro headwinds and heightened promotions across competitors pose challenges. If the company can sustain its product pipeline while deepening consumer engagement through campaigns like “Summer of Align,” it stands well-positioned to defend, and potentially grow, its market share in a competitive and uncertain retail landscape.
LULU’s Rivals: NIKE & Under Armour Streamline Inventories
In the competitive athletic apparel and footwear market, NIKE Inc. NKE and Under Armour UAA are both streamlining inventories, though from different starting points and with distinct priorities.
NIKE is navigating a period of transition as demand for some of its iconic franchises, like Air Force 1, Dunk and AJ1, softens. To defend its dominance, the company is focusing on new product innovation, scaling performance-driven categories, and leveraging its powerful digital ecosystem to engage consumers directly. NIKE is also refining its wholesale strategy to balance direct-to-consumer growth with key retail partnerships, aiming to stabilize U.S. sales while driving stronger momentum internationally.
Under Armour is repositioning itself as a performance-focused brand, emphasizing innovation in training, running and team sports apparel while scaling footwear selectively. It is working to strengthen brand relevance with athletes through improved product design and technical functionality, while streamlining operations to enhance profitability. However, UAA faces headwinds from weaker consumer demand in North America and intense competition from larger rivals. Management is betting on disciplined execution, targeted international expansion and a return to performance-first marketing to reignite growth, though the brand’s turnaround remains a work in progress.
The Zacks Rundown for LULU
lululemon’s shares have plunged 48.1% year to date compared with the industry’s decline of 28.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.20X, higher than the industry’s 10.99X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 1.9%, whereas the consensus mark for fiscal 2026 suggests growth of 7.3%. Earnings estimates for fiscal 2025 and 2026 have moved downwards in the past seven days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is lululemon's Product Innovation Enough to Defend Market Share?

lululemon athletica inc.’s LULU inventory strategy in first-quarter 2025 reflects a balancing act between sustaining product innovation and managing near-term macro pressures. Unit inventory rose 16% year over year, while dollar inventory climbed 23%, driven by higher average unit costs from tariffs and foreign exchange impacts. Management views this elevated stock as intentional, supporting new product introductions like the No Line Align and Daydrift trousers, which have seen strong guest response. The company is leaning into innovation and replenishing top sellers quickly, even if it means holding more inventory in the short term, to protect full-price selling and market share gains.
However, this inventory build is not without risks. lululemon flagged U.S. traffic softness and a more cautious consumer as factors prompting a slightly higher markdown outlook for the second half of fiscal 2025. While first-quarter markdowns declined 10 basis points (bps) versus last year, management has layered in an additional 10-20 bps for fiscal 2025 to account for potential promotional pressure, especially in the competitive U.S. market.
In the long run, lululemon’s inventory play is as much about positioning for growth as it is about managing the current headwinds. With 40% of purchases in core products that can be flexed as needed, the brand retains the agility to adjust buys based on demand. The focus remains on fueling its five key activities — yoga, running, training, golf and tennis — through deeper innovation and full-price sales discipline. If consumer demand holds up, the company’s current inventory levels could enable stronger back-half sales and margin recovery; if not, the risk is that today’s strategic build could morph into tomorrow’s drag on profitability.
LULU’s Rivals: NIKE & Under Armour Streamline Inventories
In the competitive athletic apparel and footwear market, NIKE Inc. NKE and Under Armour UAA are both streamlining inventories, though from different starting points and with distinct priorities.
NIKE is leaning heavily into inventory discipline as part of its broader marketplace reset. In fourth-quarter fiscal 2025, inventories fell 13% year over year, reflecting tighter buying, faster product flow, and a cleaner marketplace after prior excesses. The company has been strategically reducing lower-margin SKUs while prioritizing performance categories like running, training, and Jordan, where consumer demand remains robust. This streamlined approach supports higher full-price sell-throughs and margin stability, but it also means NIKE must balance leaner stock levels with the ability to meet surges in demand, especially as it repositions NIKE Digital within an integrated channel strategy.
Under Armour is also tightening its inventory position, but from a different starting point. After dealing with elevated stock levels that pressured margins in prior quarters, the brand has been aggressively clearing excess through planned promotions and more targeted assortments. The company’s inventory is now more closely aligned with demand trends, particularly in performance and training gear, helping to support cleaner full-price selling moving forward.
The Zacks Rundown for LULU
lululemon’s shares have plunged 49.5% year to date compared with the industry’s decline of 32.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 12.87X, higher than the industry’s 10.33X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 1.5%, whereas the consensus mark for fiscal 2026 suggests growth of 7.5%. Earnings estimates for fiscal 2025 and 2026 have been stable in the past seven days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free 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's Inventory Play: Streamlining or Straining Growth?

Columbia Sportswear (COLM) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to a loss of $0.2 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +32.14%. A quarter ago, it was expected that this maker of outdoor gear would post earnings of $0.68 per share when it actually produced earnings of $0.75, delivering a surprise of +10.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Columbia Sportswear, which belongs to the Zacks Textile - Apparel industry, posted revenues of $605.25 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.67%. This compares to year-ago revenues of $570.24 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Columbia Sportswear shares have lost about 30.4% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Columbia Sportswear?
While Columbia Sportswear has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Columbia Sportswear was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.36 on $940.7 million in revenues for the coming quarter and $3.46 on $3.4 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Under Armour (UAA), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 8.
This sports apparel company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level.
Under Armour's revenues are expected to be $1.13 billion, down 4.3% from the year-ago quarter.
Should You Invest in Columbia Sportswear Company (COLM)?
Before you invest in Columbia Sportswear Company (COLM), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Columbia Sportswear (COLM) Reports Q2 Loss, Tops Revenue Estimates

As the U.S. athleisure market shows signs of maturity, lululemon athletica inc. LULU is betting big on category expansion to reinvigorate growth. Despite reporting just 1% comparable store sales (comps) growth and 2% U.S. revenue growth in first-quarter fiscal 2025, the brand continues to gain market share in premium activewear, buoyed by strong guest response to newness across both performance and lifestyle offerings.
Innovations like the No Line Align and new lines such as Daydrift and BeCalm are helping broaden its appeal beyond core staples, as the company emphasizes product newness and technical solutions across its five key activities — yoga, run, train, golf and tennis.
lululemon’s strategic evolution includes a focus on franchise development, evident in the success of limited-distribution launches now being scaled. The brand is also optimizing its merchandise mix by shifting away from seasonal colors to silhouettes that offer differentiated value. While traffic trends remain soft, particularly in U.S. stores, the company is chasing demand where it sees momentum, evidenced by rapid sellouts and strong online and in-store response to innovation-driven offerings.
Looking ahead, lululemon is not only relying on product variety but also strengthening its global footprint. Growth in China (up 22%) and the rest of the world (up 17%) reflects ample whitespace internationally. As consumer behavior in North America grows more selective, lululemon’s ability to innovate in underpenetrated categories and expand internationally may prove critical to escaping domestic saturation and sustaining long-term growth. The brand remains agile, adjusting inventory, pricing and assortment to keep pace with a shifting market landscape.
Are LULU’s Rivals Feeling the Heat in a Mature Athleisure Market?
As lululemon navigates slowing U.S. sales in a saturated athleisure market, investors are increasingly asking whether giants like NIKE Inc. NKE and Under Armour UAA are feeling similar pressure from shifting consumer demand and heightened competition.
NIKE’s athleisure business is feeling the strain of a maturing market, as the fourth-quarter fiscal 2025 results showed a sharp 12% revenue decline and a 26% drop in NIKE Digital, which houses much of its lifestyle and athleisure assortment. While NIKE is repositioning toward core sports and performance, its sportswear segment, where the overlap with lululemon is most apparent, has also declined. The company is now leaning into sport-led assortments to rebalance its portfolio and drive growth.
Under Armour is facing headwinds from a saturated athleisure market, particularly in North America, where fourth-quarter fiscal 2025 sales declined 10% and lifestyle categories underperformed. Management highlighted challenges in attracting style-focused consumers, a segment where lululemon excels. While UAA’s core remains performance-driven, its athleisure offerings in training and activewear directly overlap with lululemon. The brand is now focused on improving design relevance and tightening distribution to stay competitive in a crowded landscape.
The Zacks Rundown for LULU
lululemon’s shares have lost 40.9% year to date compared with the industry’s decline of 26.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 15.04X, significantly higher than the industry’s 11.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 1%, whereas the consensus mark for fiscal 2026 suggests growth of 8.3%. Earnings estimates for fiscal 2025 and 2026 have been southbound in the past 30 days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Category Expansion Help lululemon Escape Athleisure Saturation?

Nike NKE shares were up roughly +3% on Thursday ahead of results for its fiscal fourth quarter, which it released after the closing bell.
Despite the pre-earnings spike, NKE is down 17% in 2025 and has now fallen a grizzly 44% over the last three years to widely trail the benchmark S&P 500’s gains of more than +50% and its archrival Adidas ADDYY, whose stock is up +24% during this period.
That said, let’s see if Nike’s Q4 report was enough to get the ball rolling in regard to a potential rebound for the iconic apparel retailer's stock.
Image Source: Zacks Investment Research
Nike’s Q4 Report & Full Year Results
Reporting Q4 sales of $11.1 billion, Nike was able to exceed the Zacks Consensus of $10.71 billion, although this was a 12% decline from $12.6 billion in the comparative quarter. On the bottom line, Nike’s net income came in at $211 million or $0.14 per share, which topped EPS expectations of $0.12 but fell 86% from $1.01 a share in the prior year quarter.
Dealing with what has been an ongoing need to revamp its product line, Nike CEO Elliott Hill stated the company is leaning into a new “sport offense” strategy to reignite growth by focusing on core products, product innovation, and a storytelling marketing strategy. Overall, Nike’s total sales fell 10% during its fiscal 2025 to $46.3 billion, while EPS dropped 45% to $2.16 from $3.95 in FY24.
Monitoring Nike’s P/E Valuation
Amid the decline in Nike’s earnings, it has become more evident that monitoring the retail apparel giant’s P/E valuation is very necessary.
While Nike’s Q4 report was somewhat underwhelming, at around $62 a share, NKE does trade at a reasonable 32.1X forward earnings multiple. This is near Nike’s decade-long median of 29.4X forward earnings and a 37% discount to its decade high of 51.1X. Still, Nike trades at a premium to the benchmark’s 23.5X forward earnings multiple and Adidas at 26.8X.
Image Source: Zacks Investment Research
Bottom Line
Nike stock currently lands a Zacks Rank #3 (Hold), but its Q4 report did not give enough to justify a meaningful rebound. Losing market share to rival Adidas and up-and-coming players like Under Armour UAA, Nike’s turnaround strategy is much needed and could eventually cause a sharp rally in NKE, just not right now.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	UAA	Industry	UAA	Industry	Volume, $
Yesterday 4.7 - 4.8	1.73	2.84	3.22	0.90	17.56M
Week 4.7 - 4.9	-0.18	1.94	2.09	5.25	170.53M
Month 4.7 - 5.2	-4.37	1.96	31.43	11.01	807.79M
3 Months 4.7 - 7.0	-30.91	1.76	35.98	18.44	3.67B
6 Months 4.7 - 7.6	-15.52	7.72	48.08	26.44	8.09B
Year 4.7 - 11.9	-44.79	24.58	58.75	32.59	17.27B
3 years 4.7 - 13.0	-33.13	97.31	88.13	63.67	45.42B
5 years 4.7 - 27.3	-68.56	107.87	113.20	82.19	89.16B
All time 1.5 - 54.6	62.44	11.11	—	—	90.69B

Under Armour, Inc.

Price and volatility history

Risk ratios