Once, Lululemon was considered almost synonymous with yoga, and its legendary black leggings became a cult wardrobe staple for millions of people. Today, the brand faces a sharp slowdown in growth and a drop in its stock price. Therefore, in order to recapture its former success and conquer new markets, the company is betting on global sports stars.

A turning point for Lululemon

In recent months, Lululemon has found itself at the center of concerning news for shareholders. After an impressive sales surge during the pandemic, when global revenue confidently exceeded $10 billion, growth rates have significantly slowed. Against this backdrop, the company’s shares have fallen by almost 50% compared to their peak values, which has effectively wiped out all gains since 2020.

Management is not changing its ambitious goal: to reach $12.5 billion in revenue by the end of 2026. However, analysts are already forecasting a shortfall of about $500 million. Additional pressure comes from intensifying competition in the sportswear market and a cautious attitude among investors, who fear prolonged stagnation.

In such circumstances, the question arises: can the new strategy, based on inviting stars, shift the balance of power and return Lululemon to its previous momentum?

A story of success and new challenges

Lululemon’s journey began as a niche brand for yoga enthusiasts and those seeking a mindful lifestyle. The company chose a non-aggressive marketing approach, forgoing mass advertising and betting on a network of local ambassadors—from yoga instructors to fitness trainers.

This authentic style set Lululemon apart from industry giants for a long time. However, after several years of rapid growth and assortment expansion, sales growth slowed. Strong competitors emerged in the market: Alo Yoga and Vuori quickly became new magnets for young people. Large-scale expansion led to a loss of uniqueness and increased business management costs.

Why the brand decided to change its strategy

The first warning signs—a decline in audience interest and a drop in revenue—prompted Lululemon to reconsider its approach. The need to move beyond yoga and search for new growth points became obvious. The brand began actively developing lines for tennis, golf, a male audience, and even experimenting with footwear.

This approach largely resembled the path taken by market leaders such as Nike and Adidas, who have long relied on a wide assortment and cross-functional collections. In general, the strategy of expanding reach works in a variety of scenarios. A similar example can be found in the video game industry. Previously, game studios mainly targeted PC users. However, with the growth of the smartphone market, brands began actively developing mobile applications. We saw this by analyzing the data presented here on Plinko apps. This game is now actively played not only on computers, but also on smartphones and tablets. And there are many such examples.

For Lululemon, this step was an attempt not only to expand its reach, but also to breathe new life into the brand’s recognizable image.

Betting on stars may prove successful

At the heart of the new strategy are ambassadors—famous athletes who publicly showcase the brand’s products. Among the new faces are figures such as Lewis Hamilton (seven-time Formula 1 champion), golfer Max Homa, and tennis player Frances Tiafoe, as well as representatives of other sports.

The term “brand ambassador” means not just the face of an advertising campaign, but an influential personality shaping the target audience’s perception and setting style standards. For Lululemon, this became a departure from the previous approach, when the focus was on local instructors and mentors in the fitness field.

As Chief Marketing Officer Nikki Neuburger emphasizes, the company does not plan to sign hundreds of contracts as competitors do. “If you talk to our ambassadors, it’s important for them not just to be one of many, but to feel personally involved in the brand’s development,” she notes.

Attracting sports stars always carries risks associated with their off-field behavior and performance in competitions. For example, Frances Tiafoe failed to reach the expected stages at the US Open, and Max Homa’s performances in 2024 rarely made the top 5 in PGA Tour rankings. Contracts with famous athletes require significant investment, increasing the financial burden on the company.

Unlike Nike and Adidas, who build large rosters of ambassadors and aggressively promote each line, Lululemon has chosen a more targeted and thoughtful approach. This choice helps maintain focus but limits the possibilities for mass reach.

Competitors are not standing still

At the same time, competitors are strengthening their positions. Alo Yoga and Vuori are becoming increasingly visible players in the premium segment, drawing in the younger audience. Industry veterans such as Nike and Adidas remain unmatched in footwear and mass sports campaigns.

Lululemon is trying to catch up by testing new categories, including footwear, but so far avoids disclosing detailed figures for these areas. The market is waiting to see whether the company can find its niche and not get lost among more established players.

Rethinking the brand’s philosophy

Despite the changes, Lululemon strives to maintain its unique philosophy, based on the value of personal progress and a mindful approach to sports. According to Nikki Neuburger, the brand emphasizes not victory at any cost, but the path of development, where every stage of the process matters. Unlike Nike, for whom “winning is everything,” Lululemon invites customers to see sport as a tool for self-improvement.

The brand’s future—expectations and reality

By the end of 2026, the company expects to reach $12.5 billion in revenue, but independent experts doubt the attainability of this goal. The nearest test will be the earnings report, which will be released on September 4—only then will the market get its first signals as to whether the new strategy has worked or if a course correction is needed.

Why stars matter for sports brands

In the modern sports industry, ambassadors and recognizable athletes play a key role in shaping the image and promoting products. The example of Nike, which has built an entire philosophy around names like Kevin Durant or Michael Jordan, demonstrates the potential of this approach. On the other hand, insufficient engagement or poor performance can weaken the impact of campaigns, as has happened with competitors—a big name does not always guarantee commercial success.

In recent years, young people have increasingly been captivated by individual success stories and personal examples of athletes, fueling the competition among brands for exclusive partnerships and prominent faces.