Adidas vs Lululemon: Revenue, Profit and Business Model
Adidas reported ~$28B of revenue in FY2025 and ~$1.5B of net income. Lululemon reported $11.1B of revenue in FY2025 and $1.6B of net income.
Latest financial snapshot
Financial summary
Adidas
Adidas reported a ~$84.7 million (EUR75 million) attributable net loss in 2023 after ending the Ye partnership, followed by attributable net income of ~$863 million (EUR764 million) in 2024 and ~$1.51 billion (EUR1.340 billion) in 2025. Sales rose from ~$24.2 billion (EUR21.427 billion) in 2023 to ~$28 billion (EUR24.811 billion) in 2025.
Lululemon
Lululemon grew revenue from $2.34 billion in fiscal 2016 to $11.10 billion in fiscal 2025 (ended February 1, 2026), but growth slowed to 4.9% in fiscal 2025 and net income fell to $1.58 billion from $1.81 billion. The slowdown turned into decline in 2026: Q2 fiscal 2026 revenue fell 4% to $2.42 billion and diluted EPS was $2.92 versus $3.10, including $0.86 from IEEPA tariff refunds. Management now guides fiscal 2026 revenue to $10.35-$10.50 billion, a 5-7% decline, with EPS of $9.48-$9.73. The company still generates cash, ending Q2 with $1.4 billion and repurchasing $330 million of stock in the quarter.
Revenue and profit by year
Adidas
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$28B | ~$1.5B | 5.4% | +4.8% | Source |
| FY2024 | ~$26.8B | ~$863.3M | 3.2% | +10.5% | Source |
| FY2023 | ~$24.2B | ~-$84.7M | -0.4% | -4.8% | Source |
| FY2022 | ~$25.4B | ~$691.6M | 2.7% | +6.0% | Source |
| FY2021 | ~$24B | ~$2.4B | 10.0% | +7.0% | Source |
| FY2020 | ~$22.4B | ~$484.8M | 2.2% | -16.1% | Source |
| FY2019 | ~$26.7B | ~$2.2B | 8.4% | +7.9% | Source |
| FY2018 | ~$24.8B | ~$1.9B | 7.8% | +3.3% | Source |
| FY2017 | ~$24B | ~$1.2B | 5.2% | +10.0% | Source |
| FY2016 | ~$21.8B | ~$1.1B | 5.3% | — | Source |
Lululemon
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $11.1B | $1.6B | 14.2% | +4.9% | Source |
| FY2024 | $10.6B | $1.8B | 17.1% | +10.1% | Source |
| FY2023 | $9.6B | $1.6B | 16.1% | +18.6% | Source |
| FY2022 | $8.1B | $854.8M | 10.5% | +29.6% | Source |
| FY2021 | $6.3B | $975.3M | 15.6% | +42.1% | Source |
| FY2020 | $4.4B | $588.9M | 13.4% | +10.6% | Source |
| FY2019 | $4B | $645.6M | 16.2% | +21.0% | Source |
| FY2018 | $3.3B | $483.8M | 14.7% | +24.1% | Source |
| FY2017 | $2.6B | $258.7M | 9.8% | +13.0% | Source |
| FY2016 | $2.3B | $303.4M | 12.9% | — | Source |
Where the revenue comes from
Adidas
- Footwear
~$16.1B (EUR14.232B) in FY2025 net sales (~57%)
Footwear is Adidas' largest revenue category, led by football, running, training, basketball, Originals, Sportswear, Samba, Gazelle, Spezial, and Adizero franchises.
- Apparel
~$9.9B (EUR8.764B) in FY2025 net sales (~35%)
Apparel includes football kits, training, running, Originals, Sportswear, and locally relevant collections that grew strongly in 2025 and Q1 2026.
- Accessories
~$2.05B (EUR1.815B) in FY2025 net sales (~7%)
Accessories include balls, bags, socks, caps, and sport equipment, including Adidas' long-running FIFA World Cup match-ball platform.
- Wholesale
60% of FY2025 net sales
Wholesale remains Adidas' largest channel, relying on retail partners, branded space, key-account relationships, and disciplined sell-in.
- Direct-to-Consumer
40% of FY2025 net sales
DTC includes own retail and e-commerce, giving Adidas more control over consumer experience, pricing, launches, data, and full-price sell-through.
Lululemon
No segment breakdown is published.
Business model and strategy
Adidas
How it makes money
Adidas develops and markets footwear, apparel, and accessories while independent manufacturing partners produce most goods. It sells through wholesale partners and direct-to-consumer channels; wholesale represented 60% of 2025 sales and direct-to-consumer represented 40%.
Growth strategy
Adidas is investing in football, running, training, basketball, Originals, and Sportswear while giving regional teams more authority over assortments and marketing. The company uses wholesale and direct-to-consumer channels rather than relying on one distribution model.
Competitive advantage
Adidas combines a recognized 3-Stripes identity, long-standing football relationships, performance products, and archive footwear such as Samba, Gazelle, Superstar, and Stan Smith. Its wholesale network and direct-to-consumer channels provide global distribution.
Lululemon
How it makes money
Lululemon makes money by designing technical athletic apparel, footwear and accessories and selling most of it directly to consumers through 825 company-operated stores (as of August 2, 2026) and its e-commerce site and app. Because it controls design, pricing and the retail checkout, it keeps the margin a wholesaler would otherwise take;
Growth strategy
Lululemon's 'Power of Three x2' plan (2022) targeted doubling revenue to $12.5 billion by 2026 through growth in menswear, digital and international markets. With fiscal 2026 revenue now guided to $10.35-$10.50 billion, that target will be missed.
Competitive advantage
Lululemon's advantages are brand equity in premium activewear, proprietary fabrics (Luon, Nulu, Everlux) that competitors can imitate in design but not easily in feel, and a direct-to-consumer model that lets it hold prices. Gross margins near 60% are well above most wholesale-dependent sportswear brands.
Questions about Adidas vs Lululemon
Which company has higher revenue — Adidas AG or Lululemon Athletica Inc.?
Adidas AG reported ~$28B (FY2025), while Lululemon Athletica Inc. reported $11.1B (FY2025). By last reported revenue, Adidas AG is the larger business, with Lululemon Athletica Inc. reporting a smaller revenue base.
What is the market cap of Adidas AG vs Lululemon Athletica Inc.?
Adidas AG's market capitalisation stands at $29.0B, while Lululemon Athletica Inc.'s is $11.5B. Adidas AG carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Lululemon Athletica Inc..
Which is more financially efficient — Adidas AG or Lululemon Athletica Inc.?
Adidas AG generates $432k / employee in revenue per employee, while Lululemon Athletica Inc. generates $285k / employee. Adidas AG shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Adidas AG and Lululemon Athletica Inc. make money?
Adidas AG and Lululemon Athletica Inc. generate revenue in fundamentally different ways. Adidas AG: Adidas develops and markets footwear, apparel, and accessories while independent manufacturing partners produce most goods. Lululemon Athletica Inc.: Lululemon makes money by designing technical athletic apparel, footwear and accessories and selling most of it directly to consumers through 825 company-operated stores (as of August 2, 2026) and its e-commerce site and app.
Which company is valued higher relative to revenue — Adidas AG or Lululemon Athletica Inc.?
On a price-to-sales (P/S) basis, Adidas AG trades at 1.0x P/S and Lululemon Athletica Inc. at 1.0x P/S. Adidas AG commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Lululemon Athletica Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Adidas AG bigger than Lululemon Athletica Inc.?
By last reported revenue, Adidas AG (~$28B (FY2025)) is the larger company compared to Lululemon Athletica Inc. ($11.1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Adidas vs Lululemon overview