Lululemon vs Dick's Sporting Goods

This page compares Lululemon and Dick's Sporting Goods, outlining business models, financial performance and market context in clear, neutral terms for readers. It explains how each company creates value, operates its channels and competes in its sector, without offering advice. Educational content, not financial advice.

This page compares Lululemon and Dick's Sporting Goods, outlining business models, financial performance and market context in clear, neutral terms for readers. It explains how each company creates va...

Comparison Snapshot

Key Financial Metrics

LULU

Metric

DKS

$22.62B

Market Cap

$18.28B

19.96%

Potential Profit

17.45%

Hold

Analyst Rating

Buy

Why It's Moving

Lululemon halts online sales of new 'Get Low' leggings amid see-through backlash, sparking sharp stock drop.

Stock plunged 6.5% on January 20 following the sales pause announcement, signaling eroded confidence in Lululemon's quality control.
Company prioritizes in-store availability while gathering customer feedback to refine product education, with plans to relaunch online soon.
Repeated transparency issues highlight intensifying competition, as the brand grapples with leadership transition amid a 50% stock slide over the past year.

Sentiment:

🐻Bearish

Lululemon halts online sales of new 'Get Low' leggings amid see-through backlash, sparking sharp stock drop.

Stock plunged 6.5% on January 20 following the sales pause announcement, signaling eroded confidence in Lululemon's quality control.
Company prioritizes in-store availability while gathering customer feedback to refine product education, with plans to relaunch online soon.
Repeated transparency issues highlight intensifying competition, as the brand grapples with leadership transition amid a 50% stock slide over the past year.

Sentiment:

🐻Bearish

Investment Analysis

Lululemon

LULU

Pros

Lululemon has a historically strong return on equity averaging around 33% over five years, indicating efficient profitability.
The company anticipates revenue growth of 4% to 6% for the full year 2025 despite challenging macro conditions.
Lululemon aims to reach its Power of Three x2 goals by fiscal 2026, implying a significant revenue increase to $12.5 billion.

Considerations

The stock declined nearly 57% in 2025, mainly due to decelerating growth and increased reliance on markdowns affecting gross margins.
Earnings per share are expected to decline by 11% to 13% in 2025, reflecting margin pressure from inflation and tariffs.
Market sentiment is bearish with forecasts predicting a further price drop toward approximately $156 by year-end 2025.

Dick's Sporting Goods

DKS

Pros

Dick's Sporting Goods maintains a strong return on equity at approximately 37%, higher than Lululemon, indicating solid profitability.
The company possesses a robust competitive position primarily operating within the U.S. market with a diversified store base.
Dick's benefits from being a major omnichannel retailer with effective integration of brick-and-mortar and direct-to-consumer segments.

Considerations

Exposure to U.S.-centric retail market makes Dick's susceptible to domestic economic fluctuations and consumer spending shifts.
The sporting goods sector is cyclical and sensitive to macroeconomic headwinds which can impact sales unpredictably.
Competition from both specialist and general retailers intensifies pricing and promotional pressure, potentially hurting margins.

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