Can Footwear and Men's Wear Power lululemon's Next Chapter?
lululemon athletica inc.’s LULU long-term growth story increasingly hinges on its ability to expand beyond its traditional women’s yoga wear roots. As competition intensifies in core categories, the company is sharpening its focus on underpenetrated segments such as footwear and men’s apparel, which offer significant white-space opportunities. These categories not only diversify revenue streams but also strengthen brand relevance among broader consumer groups, positioning lululemon for its next phase of growth.
Men’s wear, in particular, remains a compelling growth engine for the company. The category has continued to gain traction, with men’s revenues rising 3% year over year in fourth-quarter 2025, reflecting steady consumer demand despite macro pressures. Management has emphasized innovation-driven product launches and expanded assortment depth to drive engagement, supported by strong responses to new training and lifestyle collections. The company is also increasing product “newness” across its assortment, targeting roughly 35% new styles in 2026, which is expected to further stimulate interest among male customers and reinforce category momentum.
Footwear represents another strategic frontier that could materially enhance lululemon’s growth trajectory over time. While still in its early stages relative to apparel, footwear allows the company to deepen customer relationships and extend its technical innovation capabilities into adjacent categories. Combined with the steady expansion of men’s wear, footwear has the potential to boost average transaction values and improve brand stickiness. If execution remains disciplined and innovation continues to resonate with consumers, these emerging categories could play a pivotal role in powering lululemon’s next growth chapter.
LULU’s Competitors
NIKE, Inc. NKE is one of the world’s largest athletic footwear and apparel companies, known for its strong brand equity, innovation-driven product pipeline and expansive global distribution network. The company generates the majority of its revenues from footwear, supported by apparel and equipment sales across sports and lifestyle categories. NIKE continues to focus on product innovation, digital expansion and direct-to-consumer channels to strengthen customer engagement and improve margins. Its investments in performance technologies, athlete endorsements and digital platforms have helped sustain leadership in key markets, although NIKE continues to navigate demand volatility and competitive pressures in certain regions.
adidas AG ADDYY is a leading global sportswear manufacturer headquartered in Germany, recognized for its performance-driven footwear, apparel and accessories. The company has been executing strategic initiatives to enhance brand desirability, streamline operations and improve profitability following recent operational challenges. adidas has placed greater emphasis on innovation, sustainability and lifestyle-driven collections to appeal to younger consumers and expand market share. With improving brand momentum and disciplined inventory management, adidas is working to rebuild growth across key markets while strengthening its competitive position against major industry players.
LULU’s Price Performance, Valuation & Estimates
Shares of lululemon have lost 7.8% in the past six months compared with the industry’s fall of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.33X compared with the industry’s average of 18.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LULU’s fiscal 2026 earnings implies a year-over-year drop of 6.9%, while that of fiscal 2027 shows growth of 8.9%. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has moved down in the past 30 days.
Image Source: Zacks Investment Research
lululemon stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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