Lululemon vs Nike: Revenue, Profit and Business Model
Lululemon reported $11.1B of revenue in FY2025 and $1.6B of net income. Nike reported $46.4B of revenue in FY2026 and $3.1B of net income.
Latest financial snapshot
Financial summary
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.
Nike
Nike's revenue peaked at $51.4B in FY2024, then fell almost 10% to $46.3B in FY2025 as the company cleared old inventory and cut supply of lifestyle franchises. FY2026 was flat at $46.4B, with net income of $3.108B versus $5.7B two years earlier. Gross margin was 42.9%, below 44.6% in FY2024, as discounts and tariffs weighed on profit. Fourth-quarter FY2026 revenue was about $11.0B, down 1% reported and 4% currency-neutral. Nike scheduled first-quarter fiscal 2027 results for October 1, 2026, with analysts expecting roughly $11.3B in revenue, a decline of about 3%.
Revenue and profit by year
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 |
Nike
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $46.4B | $3.1B | 6.7% | +0.2% | Source |
| FY2025 | $46.3B | $3.2B | 7.0% | -9.8% | Source |
| FY2024 | $51.4B | $5.7B | 11.1% | +0.3% | Source |
| FY2023 | $51.2B | $5.1B | 9.9% | +9.6% | Source |
| FY2022 | $46.7B | $6B | 12.9% | +4.9% | Source |
| FY2021 | $44.5B | $5.7B | 12.9% | +19.1% | Source |
| FY2020 | $37.4B | $2.5B | 6.8% | -4.4% | Source |
| FY2019 | $39.1B | $4B | 10.3% | +7.5% | Source |
| FY2018 | $36.4B | $1.9B | 5.3% | +6.0% | Source |
| FY2017 | $34.4B | $4.2B | 12.3% | — | Source |
Where the revenue comes from
Lululemon
No segment breakdown is published.
Nike
- Footwear~64%
NIKE Brand footwear revenue was $29.525B in FY2026.
- Apparel~29%
NIKE Brand apparel revenue was $13.449B in FY2026.
- Equipment~5%
NIKE Brand equipment revenue was $2.199B in FY2026.
- Converse~3%
Converse revenue was $1.174B in FY2026, down 31% year over year.
Business model and strategy
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.
Nike
How it makes money
Nike designs, markets, and distributes athletic footwear, apparel, and equipment but does not own the factories that make them; independent contract manufacturers, mostly in Vietnam, Indonesia, and China, produce nearly all of its products. In FY2026, NIKE Brand footwear brought in $29.5B (about 64% of revenue), apparel $13.4B (about 29%), equipment $2.2B (about 5%), and Converse $1.2B.
Growth strategy
Under Elliott Hill, Nike's plan, branded internally as "Win Now," reorganizes the company around sports such as running, basketball, football, and training rather than broad gender and consumer segments. Three practical moves stand out. First, Nike is returning to wholesale: it rebuilt ties with Foot Locker and Dick's and resumed selling on Amazon, which helped wholesale revenue grow 6% in FY2026.
Competitive advantage
Nike's edge is scale combined with athlete relationships. No rival matches its $4.75B annual demand-creation budget or its roster across basketball (LeBron James, the Jordan Brand), football (club and federation kits), running, and women's sport (Caitlin Clark, Sabrina Ionescu). That scale also gives Nike purchasing leverage with contract factories and space with the biggest global retailers.
Questions about Lululemon vs Nike
Which company has higher revenue — Lululemon Athletica Inc. or NIKE, Inc.?
Lululemon Athletica Inc. reported $11.1B (FY2025), while NIKE, Inc. reported $46.4B (FY2026). By last reported revenue, NIKE, Inc. is the larger business, with Lululemon Athletica Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Lululemon Athletica Inc. vs NIKE, Inc.?
Lululemon Athletica Inc.'s market capitalisation stands at $11.5B, while NIKE, Inc.'s is $53.4B. NIKE, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Lululemon Athletica Inc..
Which is more financially efficient — Lululemon Athletica Inc. or NIKE, Inc.?
Lululemon Athletica Inc. generates $285k / employee in revenue per employee, while NIKE, Inc. generates $636k / employee. NIKE, Inc. 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 Lululemon Athletica Inc. and NIKE, Inc. make money?
Lululemon Athletica Inc. and NIKE, Inc. generate revenue in fundamentally different ways. 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. NIKE, Inc.: Nike designs, markets, and distributes athletic footwear, apparel, and equipment but does not own the factories that make them; independent contract manufacturers, mostly in Vietnam, Indonesia, and China, produce nearly all of its products.
Which company is valued higher relative to revenue — Lululemon Athletica Inc. or NIKE, Inc.?
On a price-to-sales (P/S) basis, Lululemon Athletica Inc. trades at 1.0x P/S and NIKE, Inc. at 1.2x P/S. NIKE, Inc. 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 Lululemon Athletica Inc. bigger than NIKE, Inc.?
By last reported revenue, NIKE, Inc. ($46.4B (FY2026)) 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 Lululemon vs Nike overview