Nike (NKE) has been king of the sports apparel market for decades, swatting away challengers as easily as Dikembe Mutombo might redirect a Muggsy Bogues layup attempt. Under Armour (UA) has failed to overtake them. Adidas (ADDDY) has faded a bit. You don’t even hear about Reebok anymore. Nike is still the king. Lululemon (LULU), a far more niche apparel company, may be its closest challenger. I thought it might be worthwhile to compare Nike stock vs. Lululemon stock.
In terms of size, there’s no comparison. Nike is a $103 billion market cap company and Lululemon is a $21 billion market cap company.
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And yet, on an average day, you might see as many people (men and women) wearing Lululemon yoga pants and pullovers as you see people wearing Nike gear. Ten years ago, that wasn’t the case.
The numbers support the anecdotal evidence. In 2010, Lululemon did just $411 million in sales. By fiscal year 2024 (reported in March 2025), however, Lululemon had done $10.6 billion in revenue, which grew 10% from the prior year.
Nike’s sales and earnings growth, on the other hand, have taken more of a hit the last couple years. In fiscal year 2025 (reported in June of this year) Nike generated $46.3 billion in sales, four times Lululemon’s figures but down 10% from the year before.
The general disparity in sales growth in NKE vs. LULU is no surprise given that Nike is the much older company, and perhaps the most universally recognized sports brand on the planet.
Even if it eventually expands beyond its yoga roots, Lululemon may never catch Nike in terms of sales, global reach, or popularity across all demographics (Lululemon’s customers tend to be white and higher-income, whereas Nike gear is worn by all).
That said, with the sports apparel segment expected to continue growing for the rest of the decade, and with both stocks down around 50% in the last five years, which apparel company is the better investment right now: Nike stock vs. Lululemon stock?
Let’s break it down!
Nike Stock vs. Lululemon Stock
From a value investing perspective, Lululemon has an edge, with LULU trading at 13x forward earnings and NKE trading at an elevated 44x. In the long term, Lululemon is growing faster than Nike. What’s telling is that institutional ownership in the two stocks is very strong; NKE currently boasts 84% institutional ownership, whereas 89% of LULU’s stock is held by institutions and hedge funds, which means Wall Street still thinks highly of both.
LULU is down 52.8% in the last two years while NKE is down 28.5%. Over the last five years, both stocks have struggled, with NKE down 47% and LULU down an equally disappointing 50%.
Analysts aren’t as bearish on the two sportswear stocks as you might expect, given the recent price performance.
LULU carries an aggregate “Hold” rating from covering analysts and an average price target of $195.84, whereas NKE has an aggregate “Buy” rating and an $82.46 price target.
And despite a rough year for Nike’s sales, analysts expect both firms to post mid-single-digit sales growth next year.
Of course, the companies are each facing the headwinds of tariffs and the possibility of consumers tightening their purse strings in a tough economic environment, but LULU’s continuing sales growth helps make it the better growth stock.
Lululemon may never knock Nike from its sports apparel perch, no matter how many people you see wearing yoga pants to the local coffee shop. But in terms of Nike stock vs. Lululemon stock, it’s no contest. Buy LULU.
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*This post is periodically updated to reflect market conditions.
