Lululemon Athletica vs. On: Which Consumer Stock Is a Better Buy for 2027?
Lululemon's steady profits stand in contrast to On's blistering revenue growth, but its declining sales raise a key question.
Investors must decide between Lululemon Athletica (LULU), a leading market player, and On, a high-growth momentum stock. Both companies are competitors in the athletic category, with Lululemon specializing in high-end yoga and technical apparel and On known for its innovative running footwear. Lululemon operates through an omni-channel model, with over 800 stores and an extensive e-commerce presence.
Its revenue for FY 2025 was $11.1 billion, with a 4.9% growth. Net income was $1.6 billion. On, on the other hand, has 70 retail locations and a strong wholesale presence, primarily in China. Revenue reached $3.7 billion in FY 2025, with impressive growth. Net income was $246 million. Legal and operational challenges, like lawsuits and management changes, affect Lululemon.
Competition, supply chain issues, and the need for premium positioning could pressure its brand. On faces scaling challenges, inventory management risks, and sensitivity to consumer spending shifts. The global sportswear market is projected to grow from $235 billion in 2026 to $402.5 billion by 2034. Based on this comparison, On appears to be a compelling choice due to its growth potential and relative market position. However, a deeper financial analysis is recommended before making an investment decision.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
