Canadian athleisure brand established in Vancouver at the turn of the millennium, famous for selling leggings at over $100 a pair. The third-biggest company in a global sportswear industry worth $446bn by net sales (according to Morgan Stanley), having barely made the top ten as recently as 2016. Operates more than 750 shops in 25 countries. Three-quarters of revenues come from the Americas. Run by Calvin McDonald.
Lululemon has reported operating margins of 15-25% over the past decade, well ahead of rivals, partly owing to the vast share of sales it makes directly to customers. Sales per square foot of shop space have reached around $1,500 a year, far outstripping other retailers. The brand spends only about 5% of revenues on marketing, preferring word-of-mouth endorsements.
In 2025 Lululemon reported declining sales in the Americas, its most important region. Shares fell by 45% in the first nine months of the year. Inventories outpaced sales growth, forcing the firm to discount core products such as its famed black leggings at outlet stores.
The brand expanded into shoes and regular casualwear and started making logo-emblazoned gear to woo youngsters, but analysts say core customers are unimpressed. Fashion trends have shifted: fitted clothes are out and baggy ones are in. Hotter rivals, such as On (the Swiss brand backed by Zendaya), Alo and Vuori, are gaining ground.
About 40% of Lululemon's products were made in Vietnam and almost 30% of its fabrics came from mainland China, two countries hit hard by Trump's tariffs. An analyst at Wells Fargo estimated that about half of Lululemon's American e-commerce orders had benefited from the de minimis waiver.
In early 2026 Elliott Management began pushing for a new boss at Lululemon.
In 2025 Lululemon sued Costco for selling cut-price versions of its trousers and other items.
All the simple programs have been written.