Lululemon Looks Cheaper Than Nike Amid Multi-Year Lows

Nike and Lululemon, once considered resilient stocks in the athletic apparel market, have both hit multi-year lows. Nike, the world's largest athletic footwear maker, sank to $36 per share after reaching an all-time high of $161.91 in November 2021. Lululemon, which reached a record high of $511.29 in December 2023, now trades at $96 per share.

The slowdown for both companies can be attributed to weak sales in North America, where they face fierce competition from smaller brands like Alo Yoga and Vuori. Nike's decision to cut ties with wholesale retailers to focus on direct-to-consumer sales has also hurt its revenue growth.

Lululemon, which built its business as a direct-to-consumer brand, is also experiencing decelerating top-line growth. Its gross margin shrank from 58.3% in fiscal 2023 to 56.6% in fiscal 2025.