Lululemon bets on NFL fans amid U.S. sales slump

Owning a pair of Lululemon leggings was once nearly every American girl's dream, demand that helped the Canadian brand achieve extraordinary success in the U.S. However, the company's early momentum may have led to complacency, as it continued to heavily rely on strategies that had worked for years while putting innovation and new ideas on the back burner.

"We've become too predictable within our casual offerings and missed opportunities to create new trends," said Lululemon CEO Calvin McDonald in an earnings call.

In recent years, Lululemon has faced growing challenges as consumer demand has slowed. Rising tariffs have added yet another layer of difficulty, especially since most of the company's products are manufactured in Vietnam and China, as indicated in its 2024 Supplier List.

In the second quarter of 2025, Lululemon's net revenue the Americas increased by 1% year over year, while comparable sales declined 4%. This is crucial for the company, as the market accounted for around 70% of its total revenue during the quarter.

Lululemon's stock has also fallen by more than 55% year to date as of November 12.

Economic uncertainty has led consumers to become more selective in their spending, particularly in the apparel and activewear categories. This trend has created pressure on Lululemon to offer new styles and stay ahead of shifting preferences.

In response, the company has begun prioritizing "newness," accelerating product updates, launching fresh styles and silhouettes, and introducing seasonal color variations to core products. These efforts aim to better meet customer expectations and stand out in a competitive market.

"While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution," said McDonald in a statement. "We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business. We feel confident in the opportunity ahead and plans we have in place to drive long-term growth."

Lululemon partners with the NFL

In late October, Lululemon (LULU) announced a partnership with the NFL to create a new collection of officially licensed products featuring all 32 teams for men's and women's apparel and accessories. The line focuses on Lululemon's core products that are most popular among consumers.

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To promote the collection, Lululemon launched the "Welcome to the Fam Club" campaign, featuring NFL legends Joe Montana, Nick Foles, Ryan Clark, and Emmanuel Acho.

This strategic partnership aims to attract more male customers while maintaining Lululemon's appeal to women, who already account for the majority of the company's revenue.

Women's range represented 63% of Lululemon's net revenue in 2024, compared to 24% for men, according to the company's 10-K filing.

With around half of Americans identifying as NFL fans, 42% of whom are women and 58% men, according to a 2024 S&P Global study, the NFL partnership gives Lululemon access to a vast potential audience.

"True NFL fans wear their pride. For them, fan gear is more than apparel, it's a badge of loyalty and a way to instantly connect with a community that is like a family," said Lululemon President of Americas and Global Guest Innovation Celeste Burgoyne in a statement.

Industry experts weigh in on the NFL partnership

Industry experts generally view the NFL partnership as a positive strategic move, although some caution that it won't fully offset the U.S. sales slowdown.

"The Lululemon/NFL partnership does make strategic sense for both parties," said WhyteSpyder VP or Partnerships Scott Benedict. "Lululemon's entry into fan apparel doesn't necessarily alienate female customers — rather, it taps into their dual roles as style-focused consumers and emerging sports fans." 

"By collaborating with the NFL, Lululemon will be able to enhance its brand visibility and drive sales while the NFL will be able to reach a diverse audience," said Consumer Products Retail Business Consultant David Biernbaum.

"This is a good initiative and the assortment looks solid. It will likely have good sell through and will probably appeal beyond the traditional Lululemon customer base," said GlobalData Managing Director of Retail Division Neil Saunders. "All that said, this is an incremental side-venture and I do not see it as remedying the problems that have the core assortment plateauing in North America."

Lululemon's new focus on innovation, combined with strategic partnerships like its collaboration with the NFL, demonstrates the company's efforts to adapt to shifting consumer preferences and economic volatility. While the U.S. market remains challenging, industry experts and the company are confident that these initiatives will strengthen the brand's long-term growth.

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