Is Lululemon Headed For Its Nike Moment?

Lululemon Athletica Inc LULU is deep in the investor penalty box, but some are wondering if it's setting up for a Nike Inc-style NKE comeback.

• View NKE’s historical price trajectory here.

After peaking in December 2023, the stock has tumbled 57%, recently hitting a five-year low of $216.49. Year-to-date, it's down a brutal 41%. Bears cite slowing U.S. growth, inventory markdowns, and increasing competition—but that might just be the setup for its redemption arc.

Read Also: Lululemon’s China Cooldown And US Struggles Weigh On Outlook

Bullish Beneath The Bruises

Despite the beating, Lulu retains some solid fundamentals. The athleisure brand still posts high returns on capital, while international sales—especially in China—continue to grow. Core products are holding pricing power, suggesting loyal demand even as markdowns weigh on margins.

That's eerily familiar to Nike's own slump not long ago. Between late 2021 and April 2025, NKE lost 69% of its value, only to rebound 45% since hitting those lows.

A similar setup could be in play for LULU—if it can prove the worst is priced in.

Technicals Still Say ‘Not Yet’

Technically, though, Lulu hasn't flipped the script, yet.

It trades well below its 200-day simple moving average (SMA) of $315.22, and the shorter-term signals don't look much better. The eight-day, 20-day, and 50-day SMAs all flash bearish signals, as LULU lags at $217.23.

Lululemon might be bruised, but not broken. If it can stabilize margins and keep global growth humming, the “Nike moment” believers may get the last laugh.

Read Next:

• Here’s How Much $100 Invested In Lululemon Athletica 15 Years Ago Would Be Worth Today

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