Nike is far larger, but lululemon reported stronger annual growth and higher fiscal-year margins in the latest completed years available. That comparison comes with important qualifications: the fiscal periods do not line up, both companies’ later reported margins benefited from tariff refunds, and lululemon’s more recent quarterly sales were declining.
How do Nike and lululemon compare on scale and growth?
Nike reported fiscal 2026 revenue of $46.398 billion for the year ended May 31, 2026, essentially flat year over year. Its fiscal 2025 revenue was $46.309 billion, following $51.362 billion in fiscal 2024. lululemon reported fiscal 2025 revenue of $11.103 billion, up 5%, for the year ended February 1, 2026. These are the latest completed fiscal years in the available company results, but they cover different periods.
| Measure | Nike | lululemon | How to read it |
|---|---|---|---|
| Latest completed fiscal year | FY2026, ended May 31, 2026 | FY2025, ended February 1, 2026 | Different fiscal years; not a same-period comparison. |
| Revenue | $46.398 billion; flat year over year | $11.103 billion; up 5% year over year | Nike’s scale is substantially larger; lululemon’s reported growth rate was higher. |
| Latest located quarterly direction | Q1 FY2027 revenue of $11.21 billion, down 4% (Yahoo Finance summary) | Q2 FY2026 revenue of $2.4 billion, down 4% | These are different quarters and sources, so they are directional context, not a like-for-like comparison. |
lululemon’s fiscal 2025 revenue growth was 7% when excluding the 53rd week in fiscal 2024; that extra week affects the year-over-year comparison. Growth was uneven by region: Americas revenue declined 1%, while international revenue rose 22%. In lululemon’s Q2 FY2026 update, comparable sales fell 9%, including a 12% decline in the Americas. The annual growth figure therefore does not describe the more recent demand picture on its own.
Nike’s fiscal 2026 reported revenue was flat, while currency-neutral revenue declined 2%. NIKE Direct revenue fell 6% to $17.7 billion, or 8% on a currency-neutral basis, and digital sales fell 12%. Nike’s Q1 FY2027 sales figure above comes from a Yahoo Finance company-page summary rather than an official release cited here, so treat it as secondary-source context.
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Which company reported higher margins?
lululemon reported higher gross and operating margins in its latest completed fiscal year than Nike reported gross and EBIT margins in its latest completed year. The margin labels are not identical: Nike’s 8.3% figure is EBIT divided by revenue, while lululemon reports operating margin. The fiscal years also differ.
| Company-reported measure | Nike | lululemon |
|---|---|---|
| Gross margin | 42.9% in FY2026 | 56.6% in FY2025 |
| Operating profitability | 8.3% EBIT margin in FY2026 | 19.9% operating margin in FY2025 |
| Net income margin | 6.7% in FY2026, down from 7.0% in FY2025 | Not stated in the cited FY2025 results |
These annual figures should not be mistaken for a clean measure of underlying, recurring profitability. Nike’s FY2026 cost of sales included a $986 million expected recovery of IEEPA tariffs. Its fourth-quarter gross margin of 49.2% included an approximately 900-basis-point benefit attributed to the expected recovery; Nike said most of the receivable was subsequently received after May 31, 2026.
Rank #2
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lululemon’s later Q2 FY2026 results were also affected: its reported 60.5% gross margin and 18.8% operating margin each included a 560-basis-point tariff refund benefit. Q2 operating income fell 13% to $453.7 million. Diluted earnings per share were $2.92, compared with $3.10 a year earlier, and included $0.86 related to the tariff refund and interest, net of tax. Those quarter-specific effects should not be blended into the annual margin table.
What do the valuation multiples say?
At the October 2, 2026 market close, StockAnalysis reported lower trailing and forward price-to-earnings ratios for lululemon than for Nike. These are third-party market-data calculations, not company-published measures or estimates of intrinsic value.
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Rank #3
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| October 2, 2026 close snapshot | Nike | lululemon |
|---|---|---|
| Share price | $33.87 | $94.46 |
| Market capitalization | $50.31 billion | $10.46 billion |
| Trailing P/E | 16.22 | 7.73 |
| Forward P/E | 24.42 | 11.33 |
A lower P/E means investors are paying less per dollar of the earnings used in that calculation; it does not, by itself, show that a share is undervalued. Trailing multiples depend on past earnings, while forward multiples use forecast earnings. When profits are under pressure, changes to earnings inputs can move either ratio substantially. Share prices and vendor calculations also change, so this table is a dated screen rather than a current quote or a valuation conclusion.
What should investors watch next?
Nike: evidence of demand and channel stabilization
Nike’s FY2026 release described continued top-line headwinds, and Q4 NIKE Direct revenue was down 7%. The figures showing lower annual digital and direct sales make a recovery in consumer demand and those channels important to monitor. Nike CEO Elliott Hill said in the June 30, 2026 results release: “In fiscal 2026, we took decisive actions to strengthen the foundation of NIKE, Inc. and reposition our business for long-term growth.” That is management’s description of its strategy, not proof that a turnaround has taken hold.
Rank #4
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- Foam midsole delivers a soft ride.
- Flex grooves create a cushioned effect for your run.
- Waffle outsole is a made of a durable, flexible material that helps keep you on the move.
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lululemon: Americas demand and full-price selling
lululemon’s Q2 FY2026 filing reported Americas comparable sales down 12%. The company identified product creation, activation, and enterprise enablement as parts of its action plan. Interim Co-CEO and CFO Meghan Frank said improving full-price sales over 2026, particularly in North America, was a priority. That statement describes a goal; the sales results will determine whether it is being achieved.
Separate operating progress from one-time benefits
For both companies, useful follow-up evidence includes sales trends, full-price selling, and margins after tariff-related benefits no longer lift reported results. International performance is another relevant indicator: it was a source of growth for lululemon in FY2025 even as Americas revenue declined. The fiscal periods and geography of each new report matter when comparing results.
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How to interpret the comparison
The available figures support a trade-off, not a winner on every measure: Nike has much greater revenue scale, while lululemon posted higher growth in its latest completed fiscal year and higher reported margins. The lower October 2 P/E multiples for lululemon add a valuation contrast, but they sit alongside weaker recent quarterly sales and depend on earnings that may change. Neither the reported margins nor the multiples settle which stock is the better investment; that depends on future results and an investor’s own circumstances.
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