Lululemon Athletica vs. Nike: What Revenue Trends Reveal for These Sportswear Stocks
Key Points
Nike currently generates much higher overall revenue than Lululemon Athletica, maintaining a wide lead throughout the observed periods.
Over the last eight quarters, the two companies have maintained stable quarter-over-quarter patterns with predictable, repeating cyclical peaks.
Investors should watch whether the massive revenue gap between the two companies continues to hold steady or begins to shift in upcoming quarters.
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Lululemon Athletica: Assessing Its Seasonal Revenue Cycle
Lululemon Athletica (NASDAQ:LULU) primarily generates revenue by designing and selling athletic apparel, footwear, and accessories directly to consumers and through its global network of retail locations.
While expanding its footprint by opening a new physical retail store in Greece in May 2026, it reported 8% net income margin for the quarter ended May 3, 2026.
Nike: Maintaining Consistency at Massive Scale
Nike (NYSE:NKE) earns its revenue by designing, marketing, and distributing athletic footwear, apparel, and equipment worldwide through specialized retail outlets, digital channels, and independent distributors.
It declared a quarterly cash dividend for shareholders on May 4, 2026, and it reported 5% net income margin for the quarter ended Feb. 28, 2026.
Why Revenue Matters for Retail Investors
Tracking revenue helps investors understand exactly how much money a business is generating from its core sales activities before any operating expenses or taxes are deducted. Understanding this top-line figure allows investors to measure a company's total customer sales volume and baseline growth trajectory over time.
Quarterly Revenue for Lululemon Athletica and Nike
| Quarter (Period End) | Lululemon Athletica Revenue | Nike Revenue |
|---|---|---|
| Q3 2024 | $2.4 billion (period ended July 2024) | $11.6 billion (period ended Aug. 2024) |
| Q4 2024 | $2.4 billion (period ended Oct. 2024) | $12.4 billion (period ended Nov. 2024) |
| Q1 2025 | $3.6 billion (period ended Feb. 2025) | $11.3 billion (period ended Feb. 2025) |
| Q2 2025 | $2.4 billion (period ended May 2025) | $11.1 billion (period ended May 2025) |
| Q3 2025 | $2.5 billion (period ended Aug. 2025) | $11.7 billion (period ended Aug. 2025) |
| Q4 2025 | $2.6 billion (period ended Nov. 2025) | $12.4 billion (period ended Nov. 2025) |
| Q1 2026 | $3.6 billion (period ended Feb. 2026) | $11.3 billion (period ended Feb. 2026) |
| Q2 2026 | $2.5 billion (period ended May 2026) | Not yet reported |
Data source: Company filings. Data as of June 23, 2026.
Foolish Take
Both Lululemon and Nike show a trend of revenue spikes in one quarter. For Lululemon, that’s the first quarter, which is the company’s fiscal fourth quarter and encompasses the key winter holiday shopping time. Nike’s sales jump up in Q4, its fiscal second quarter, also due to overlap with the holiday shopping season which includes Black Friday.
This pair of athletic apparel companies are facing a challenging period. Lululemon is changing CEOs and reduced its 2026 sales outlook to be flat compared to 2025. Nike’s $11.3 billion in revenue for its fiscal Q3 ended Feb. 28 was flat year over year. This situation has led to both stocks dropping near 52-week lows.
For investors weighing whether to buy shares in Lululemon or Nike, the former has shown more quarters with year-over-year sales growth although the arrival of a new CEO, Heidi O’Neill, won’t be until September, injecting uncertainty into future revenue potential.
Nike’s advantage is that it pays a dividend, currently yielding a robust 3.9%. It has a track record of increasing dividend payouts for 24 consecutive years.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Nike. The Motley Fool has a disclosure policy.
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