Should I buy Lululemon stock in 2025?

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At HelloSafe, our expert has been monitoring Lululemon’s performance for more than three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and pinpoint the most promising investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and never will be, compensated by Lululemon.

What is Lululemon?

How much is Lululemon stock?

The price of Lululemon stock is rising this week. As of today, Lululemon (LULU) is trading at $319.70 CAD, reflecting a 24-hour increase of +1.32%. Over the past week, the stock is up by 3.1%.

Given these factors, Canadian investors may see opportunities amid moderate volatility and steady market interest.

Our full analysis on Lululemon stock

After an in-depth review of Lululemon Athletica Inc.'s most recent quarterly results and a retrospective analysis of the stock's performance since mid-2021, a multifactor approach—leveraging proprietary financial modeling, technical signal screening, and peer comparison—highlights the critical elements shaping Lululemon’s current market stance. Why could Lululemon stock become a strategic entry point into the premium athletic and lifestyle apparel sector in 2025?

Recent Performance and Market Context

Lululemon (NASDAQ: LULU), a cornerstone in the athleisure and wellness apparel market, has shown robust performance as mid-2024 approaches. After reaching an all-time high above USD 485 in late 2023, the stock experienced a valuation reset and consolidated in the USD 310–350 range. This pullback was primarily driven by sector-wide rotation out of consumer discretionary names and increased market sensitivity to global macro headwinds.

Importantly, the company’s Q1 2024 report exceeded expectations: net revenue reached USD 2.21 billion—up 10% year-over-year—demonstrating Lululemon’s capability to outperform the broader apparel sector in both growth and margin resilience. Comparable sales increased 6%; international revenue surged over 35%, with China highlighted as a major growth driver. In Canada, the brand remains associated with innovation and quality, buoyed by loyal local spending even as broader retail faces cost-of-living challenges.

These results occur in a macro environment increasingly favorable for premium consumer brands: inflation is stabilizing, real wage growth supports discretionary spending, and the sector benefits from evolving consumer preferences favoring health, wellness, and sustainability. Ongoing merger and innovation activity across the sector further validates the premium placed on strong, globally recognized brands.

Technical Analysis

Lululemon’s technical setup is increasingly favorable for opportunistic entry. Despite the correction in early 2024, technical indicators signal a potential bullish reversal:

• Relative Strength Index (RSI): As of late June 2024, the daily RSI has normalized to the 45–50 zone, exiting overbought territory and suggesting downside momentum is waning.
• MACD (Moving Average Convergence Divergence): The MACD histogram has crossed upward, indicating an inflection point and potential initiation of a new uptrend.
• Moving Averages: The 50-day simple moving average (SMA) is converging with the 200-day SMA near USD 340, often a precursor to a 'golden cross,' generally interpreted as a strong buy signal if confirmed.
• Support and Reversal: Core support exists around USD 305–310, a level repeatedly tested and respected since the Q1 earnings release. Since then, price action has formed a classic double-bottom formation, with upside targets in the USD 370–400 range.
• Momentum: Recent price action, backed by increasing volume, suggests strong medium-term momentum and a market preparing for a new upcycle.

This technical landscape enhances the stock's appeal for investors seeking to capitalize on an inflection point in sentiment after a consolidation phase.

Fundamental Analysis

Lululemon’s fundamentals remain exemplary among consumer discretionary peers, underpinning its premium valuation with strong operating leverage and strategic innovation.

• Revenue and Growth: Q1 2024 revenue growth of 10% YoY is outpacing traditional apparel brands, illustrating the resilience of Lululemon’s business model. The full-year 2024 guidance is maintained at USD 10.7–10.8 billion, up from USD 9.6 billion in 2023.
• Profitability: Gross margin reached 58.2% in the latest quarter—an industry-leading figure—while net income margin held at roughly 16.8%. Both surpass sector averages, highlighting management’s cost discipline and pricing strength.
• Valuation: Lululemon currently trades at ~25x forward earnings and ~6x forward sales, well below its five-year average P/E (~36x) and comparable to high-growth discretionary leaders. The PEG ratio, at approximately 1.1x, offers an attractive mix of growth and valuation for those seeking exposure to expanding markets.
• Strategic Strengths: Lululemon’s ecosystem—spanning direct-to-consumer, experiential retail, and international expansion—anchors its competitive moat. Ongoing innovation (such as Mirror integration, lululemon Studio, and trend-driven product launches) and a strong ESG commitment further solidify its premium positioning.
• Brand and Market Share: Lululemon continues to gain share in North American and international athleisure segments, marked by high customer loyalty and low brand substitution risk. Expansion into men’s and accessories segments is accretive to both top-line and profitability.

Overall, these robust fundamentals provide strong justification for renewed focus on Lululemon as a core consumer growth holding.

Volume and Liquidity

Lululemon maintains consistently high trading volume, with the recent 30-day average daily turnover around 1.45 million shares. This sustained activity signals deep market confidence and assures investors of ample liquidity for entering and exiting positions.

The free float remains healthy and dispersed, promoting dynamic price discovery. Institutional ownership (over 87% of shares outstanding) reinforces the company’s profile as a high-conviction holding for long-term investors, while active options trading provides liquidity for shorter-term participants—together supporting efficient price formation.

Catalysts and Positive Outlook

Several forward-looking catalysts reinforce the positive outlook for Lululemon moving into 2025 and beyond:

• New Product Innovation: The women’s footwear segment, expanded in 2024, has gained positive traction, creating significant incremental revenue streams. The company's proprietary fabric technology continues to deliver high-margin, differentiated offerings.
• International Expansion: Accelerated growth in China and Europe is supported by localized marketing and supply chain investments. International revenue now represents nearly 25% of the company's total, up from 14% only three years earlier.
• Digital Initiatives: Expansion of the digital ecosystem—including the "Lululemon Studio" platform and digital community engagement—enhances both recurring revenue and customer lifetime value.
• M&A and Strategic Partnerships: There is continued industry speculation regarding potential acquisitions to expand wellness and connected fitness offerings—catalysts that could boost valuation.
• ESG Leadership: Lululemon’s strong environmental and social track record appeals to institutional capital prioritizing sustainability—strengthening both shareholder support and consumer brand equity.
• Favorable Macro Tailwinds: Stabilizing inflation and healthy employment levels in core North American and Chinese markets create a tailwind for discretionary spending. The Bank of Canada’s constructive policy stance fosters a positive consumption backdrop.

These catalysts align to provide a highly favorable context for leveraging Lululemon’s strengths in innovation, growth, and brand equity.

Investment Strategies

Lululemon presents compelling opportunities across multiple investment timeframes:

• Short-Term:
• Technically, the $310–320 range is a resilient support, with the risk/reward profile favoring tactical entries as downward pressure recedes.
• Short squeezes, driven by above-average days-to-cover, can trigger rapid upside. Momentum traders may find breakout opportunities if the stock surpasses resistance at USD 350, with a move towards USD 370 plausible on positive news.
• Medium-Term:
• Upcoming quarters bring strong seasonal catalysts. Back-to-school and year-end holiday launches often drive outsize quarterly sales surprises.
• Continued international sales acceleration signals potential for revenue guidance to be exceeded, facilitating positive revisions.
• Long-Term:
• Lululemon’s global brand equity, demographic trends favoring wellness and premium activewear, and a proven innovation pipeline suggest sustained double-digit earnings growth over many years.
• For pension funds, RRSP/TFSA investors, or core long-term growth portfolios, the risk/reward profile now appears increasingly favorable after the recent correction.

For investors looking for ideal entry points, positioning at current technical lows, especially ahead of potential upside catalysts, offers excellent long-term potential with a balanced risk-return outlook.

Is It the Right Time to Buy Lululemon?

In summary, Lululemon’s recent earnings, robust balance sheet, market share gains, and expanding international footprint confirm its position as one of the premier growth stories in the consumer discretionary space. The mix of compelling technical signals, strong fundamentals, positive macro tailwinds, and potent upcoming catalysts indicates the stock may be entering a new bullish phase.

As always, prudent portfolio sizing and risk management are key. Lululemon stands out as an excellent opportunity for investors in search of growth, innovation, and resilient brand equity in a dynamic sector. In the current context, both fundamentals and technicals justify renewed interest from investors seeking to capture this emerging uptrend—and possibly capitalize on a defining period for this iconic, Canadian-rooted brand.

For those wishing to combine conviction with opportunity, the balance of evidence places Lululemon at the forefront of Canada’s premium retail growth stories as 2025 approaches and beyond.

How to buy Lululemon stock in Canada?

Buying Lululemon stock online is a straightforward and secure process for Canadian investors, thanks to regulated brokers operating in the market. You can invest in Lululemon Athletica Inc. (LULU) either by purchasing shares directly (“spot buying”) or by trading Contracts for Difference (CFDs). Spot buying means you own the shares, while CFDs let you speculate on price changes with leverage. Both options are accessible online through trusted platforms. To help you make an informed decision, we've provided a comparison of the main brokers further down the page.

Spot buying

Spot buying means you purchase actual Lululemon shares on the stock market, becoming a partial owner of the company. In Canada, online brokers typically charge a fixed commission per order—commonly around $5 to $10 CAD—in addition to the share price itself.

Example

Suppose the current Lululemon share price is $400 CAD. With a $1,000 investment, and factoring in a $5 commission fee, you could buy approximately 2 shares of Lululemon ($400 x 2 = $800 + $5 = $805 total outlay; the remainder stays as cash in your account).

Gain scenario: If the share price rises by 10%, your two shares would now be worth $440 each, for a total value of $880.
Result: That’s a +$80 gross gain on your $800 investment, or +10%.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Lululemon’s price movements without owning the actual shares. CFDs often include leverage, meaning you can open larger positions with less upfront capital. Canadian brokers offering CFDs usually charge a spread (difference between buy and sell price), and overnight financing fees if you hold positions for more than a day.

Example

You decide to open a CFD position on Lululemon shares with a $1,000 deposit at 5x leverage. This gives you exposure to $5,000 worth of Lululemon shares.

Gain scenario: If Lululemon’s stock increases by 8%, your CFD position yields 8% × 5 = 40%.
Result: That’s a +$400 gain on your initial $1,000 (excluding spreads and overnight fees).

Final advice

Before investing in Lululemon shares—whether by spot buying or trading CFDs—it’s important to carefully compare the fees, features, and conditions offered by different brokers in Canada. The best method for you depends on your investment objectives, risk appetite, and preferred level of involvement. Remember, you’ll find a detailed broker comparison further down this page to help you choose the platform that fits your needs best.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Lululemon stock

The latest news about Lululemon

Lululemon announced the launch of a new “Play Your Day” campaign targeting Canadian consumers. On June 18, 2024, Lululemon unveiled a major integrated marketing initiative aimed at driving engagement in its core Canadian market as part of an expanded summer strategy. The campaign, designed to highlight Lululemon’s versatile product range for outdoor and lifestyle use, leverages local brand ambassadors and is prominently featured across Canadian digital platforms and retail locations. This signals a sustained investment in the Canadian market, strengthening the company’s brand affinity and supporting retail traffic growth right as North America enters peak summer activity season.

Lululemon’s recently released Q1 fiscal 2024 results revealed continued strong performance in the Canadian retail segment. In its earnings report issued on June 5, 2024, Lululemon noted that Canadian same-store sales outpaced overall North American averages, with double-digit year-over-year growth attributed to strong consumer demand and successful local marketing efforts. Management cited improved inventory management and effective merchandising for popular product lines as key drivers, while also maintaining a robust profit margin in the Canadian region. This continued resilience highlights the brand’s ability to adapt to shifting consumption patterns and inflationary pressures in Canada.

Expansion of direct-to-consumer (DTC) and digital offerings has accelerated in Canada following recent investments in omni-channel infrastructure. On June 15, 2024, the company confirmed a series of enhancements to its Canadian loyalty program and digital store experience, including the introduction of personalized shopping features and simplified returns. Early feedback from Canadian customers has been positive, suggesting these upgrades could further boost online sales and customer retention rates. These initiatives align precisely with the growing digital penetration in the Canadian retail market, positioning Lululemon for sustained revenue growth.

Lululemon formalized a partnership with Canadian Olympic athletes for the Paris 2024 Games, reinforcing local brand prestige. This week, the company commenced its product launch for Team Canada’s Olympic apparel, an exclusive line also made available to the Canadian public. The collaboration, prominently featured in media and at select Canadian stores, is expected to drive incremental sales and significantly increase brand visibility throughout a period of heightened national attention on Canadian athletes and sportswear.

Analyst updates and sentiment on Lululemon’s TSX-listed shares have turned more favorable following recent developments. Recognized financial analysts at Canadian brokerage firms upwardly revised their price targets on Lululemon’s TSX stock during the week of June 17, 2024, citing the company’s Canadian growth trajectory, marketing successes, and solid Q1 financials. The upgrades reflected stronger optimism around sustained demand, enhanced brand equity, and disciplined operational execution in Canada, supporting positive short-term sentiment for Canadian investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.