Key Stats for Lululemon Stock
- Price Change for $LULU stock: 2%
- Current Share Price as of Oct. 27: $181
- 52-Week High: $423
- $LULU Stock Price Target: $194
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What Happened?
Lululemon (LULU) stock jumped almost 2% on Monday when it announced a partnership with the NFL to launch officially licensed apparel.
This marks the first time Lululemon has offered NFL-branded products or worked with any major sports league at this scale.
The collection launches on Tuesday and includes men’s and women’s apparel featuring all 32 NFL team logos.
Some of Lululemon’s most popular items are part of the lineup. The men’s Steady State franchise and women’s favorites like the Define jacket, Scuba hoodie, and Align pants will all be available with NFL branding.
Items will be sold on the NFL’s e-commerce site, at team retail locations, and through Fanatics, which holds the league’s consumer product licensing rights. The partnership gives Lululemon access to millions of NFL fans who might not have considered the brand before.
Celeste Burgoyne, president of Lululemon’s Americas division, said the move is about meeting existing customers where they want to shop while also bringing in new ones.
“It really is about enabling our existing guests to be able to now wear Lululemon in arenas and stadiums, but it’s also about a new guest and expanding,” she told CNBC.
This follows a similar partnership Lululemon struck with the NHL last year, and the company has been working hard to expand beyond its yoga roots into mainstream sports and performance wear.
Recent brand ambassadors include F1 champion Lewis Hamilton, NFL player DK Metcalf, PGA golfers Max Homa and Min Woo Lee, and tennis pro Frances Tiafoe.
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What the Market Is Telling Us About LULU Stock
The 2% gain in LULU stock shows investors are hungry for positive news from a company that’s been struggling. The stock is down nearly 19% this year and is sitting more than 50% below its all-time high.
The NFL partnership taps into a massive audience. NFL games regularly draw the largest TV viewership in America, and the league’s merchandise business is huge.
By getting Lululemon products into stadiums and team stores, the company reaches customers who might never walk into a Lululemon location.
Second, it helps solve one of Lululemon’s current problems. CEO Calvin McDonald has been open about challenges in the U.S. market, particularly with the company’s lounge and social categories.
Products like the Scuba hoodie and Softstreme line have become stale, according to the company’s own assessment. Putting NFL logos on these items gives them new life and a fresh reason for customers to buy.
Third, the partnership fits into Lululemon’s broader strategy of moving into sports and performance. Lululemon has been trying to shake its image as just a yoga brand, and partnerships with major leagues like the NHL and NFL help reposition it as a serious player in the athletic apparel space.
Lululemon recently reported disappointing second-quarter results and cut its full-year guidance. Management blamed several factors, including weak U.S. demand, tariff impacts, and product assortment issues.
The stock has been under pressure amid investor concerns about whether Lululemon can turn things around.
The NFL deal doesn’t fix those underlying problems, but it does show management is being aggressive about finding new revenue streams.
According to the earnings call transcript, Lululemon’s performance apparel continues to do well, with the company gaining market share even as the overall sector declines.
NFL-branded products could help bridge that gap, as fans who buy a Scuba hoodie with their team logo might discover they like it and come back for more Lululemon items later. It’s a way to convert sports fans into regular customers.
Andrew Low Ah Kee, CEO of Fanatics Commerce, mentioned there’s “real demand and appetite for truly premium” sports apparel.
The market is oversaturated with cheap T-shirts and hoodies, and Lululemon’s premium positioning could fill a gap for fans seeking higher-quality gear.
Alternatively, the company is dealing with tariff costs that could hit profits by $320 million. The removal of the de minimis exemption makes imports more expensive, and U.S. consumers remain cautious about spending on premium apparel.
International markets continue to perform better as China and other regions are showing stronger growth, partly because Lululemon is earlier in its market penetration there.
The NFL partnership is U.S.-focused, so it specifically targets the market that’s been the company’s weakest.
Management has also said it’s working to refresh product lines and bring more new styles to market faster. Lululemon relied too long on core franchises without enough innovation, according to CEO McDonald, and the team is now focused on creating more agility in its product development process.
For investors watching LULU stock, the NFL partnership is a step in the right direction but not a game-changer on its own.
The company needs to fix its product assortment issues, manage tariff impacts, and reignite growth in the U.S. market. The partnership helps with brand visibility and customer acquisition, but execution on the core business will matter more.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
