Lululemon sales are being squeezed — but it’s hoping sports sponsorships will save its skin
The athleisure brand is now looking to real-life athletes to rescue its flagging US sales from the end of de minimis.
For almost two decades, Lululemon was the first and last word in luxury athleisure. Now, it’s the very last name in the S&P 500: LULU stock sank more than 18% on Friday, confirming it as the worst performer in the entire index in 2025 so far, down 56%.
Indeed, having notched just 1% sales growth in the US & Canada in its second quarter, as well as slashing its full-year guidance, the apparel maker appears to have hit a wall in its primary market.
Although the company cited tariffs as one reason why its margins have been under pressure — and noted that the official ending of the de minimis exemption on August 29 is likely to hurt its Canada-to-US supply chain even more — Lululemon has a more fundamental issue: falling out of fashion, just as its competition hits its stride.
In future, that might mean spending a lot more on marketing. As noted by The Economist, the company currently only spends ~5% of revenues on marketing, while competitors Alo Yoga, Vuori, and On have been shelling out for big-name celebrities.
Realigning chakras
Perhaps recognizing the threat, Lululemon has been turning to sports influencer advertising as part of a larger marketing shift, announcing partnerships in with F1 champion Lewis Hamilton, tennis player Frances Tiafoe, and golfer Max Homa this year.
While female sports stars such as Leylah Fernandez have been signed as Lulu ambassadors in years past, 2025’s roster is comprised solely of male athletes. This could suggest an intentional effort to continue growing its menswear category — which notched total sales of $625 million in the second quarter (+6% YoY) — as the brand attempts to stretch its reputation further away from $100+ yoga pants.
