Lululemon Athletica (NASDAQ: LULU) saw its stock climb over 3% on Monday, closing at $184, after the athletic wear company unveiled a fresh collaboration with the National Football League.
The deal, which brings officially licensed apparel to Lululemon stores for the first time, marks a major step in expanding its brand beyond yoga and fitness into mainstream sports culture.
The new NFL x Lululemon collection, launching Tuesday, includes men’s and women’s apparel and accessories branded with all 32 team logos. The company’s partnership also involves Fanatics, a key player in the global sports merchandise industry.
Lululemon $LULU is partnering with the NFL to launch an apparel collection for all 32 NFL teams.
This is the first time the Lululemon has offered officially licensed products for the NFL or any of its franchises – CNBC pic.twitter.com/qnnJNAbHPb
— Evan (@StockMKTNewz) October 27, 2025
Technical Setup Shows Renewed Strength
From a technical perspective, LULU shares are showing early signs of recovery after months of underperformance. The stock has rebounded from lows near $160 and is now testing resistance around $185. The Relative Strength Index (RSI) sits at 59.5, suggesting improving momentum without reaching overbought levels, while the MACD indicator has just crossed into positive territory, hinting at the potential for further upside.
If buying pressure continues, analysts expect a near-term target around $200, though sustained recovery would depend on stronger U.S. sales performance in the coming quarters.
Challenges at Home, Growth Abroad
Despite the recent enthusiasm, Lululemon’s financial story remains mixed. The brand’s U.S. division has been lagging, with management blaming outdated designs and softer demand for casualwear. In contrast, the international side of the business continues to thrive, with sales in China jumping 25% year-over-year and global revenue outside North America climbing nearly 20%.
Executives plan to increase the percentage of new styles in Lululemon’s product lineup to 35% by 2026 to address the “staleness” that’s slowed domestic growth. They believe this shift will reignite consumer excitement and restore double-digit growth rates.
Activist Pressure Builds
Adding fuel to investor speculation, Lululemon founder Chip Wilson has voiced renewed frustration with the company’s direction. In a recent campaign criticizing the board’s focus on financial targets over product innovation, Wilson hinted at the possibility of joining forces with activist investors to push for management changes.
Wilson, who still owns about 9% of Lululemon’s shares, argued that the company has drifted from its original design-driven identity. His comments, along with growing market chatter about a potential proxy battle, have created a new layer of intrigue for investors.
BNP Paribas analyst Laurent Vasilescu noted that Wilson’s involvement could be a “short-term catalyst” for the stock, potentially sparking upside if board changes or strategic shifts materialize.
Valuation Appears Attractive
With Lululemon trading more than 65% below its 2023 peak, many analysts now view the stock as undervalued. Its current forward price-to-earnings ratio of around 13 stands far below its three-year average of 34. For long-term investors, that discount may offer an appealing entry point, provided management can stabilize North American demand and maintain growth momentum overseas.
Between the high-profile NFL partnership, improving technicals, and the possibility of activist involvement, Lululemon’s stock could be setting up for a notable rebound. While execution risks remain, the company’s global strength and renewed product innovation efforts suggest that its best days may not be behind it just yet.
