Older athleisure brands like Lululemon have had a rocky year. But Americans’ appetite for exercise offers a glimmer of hope.
A new CEO will take the reins of athleisure company Lululemon on Tuesday, Sept. 8th. It’s been a rocky year for the brand that made leggings ubiquitous in the last decade. Its last CEO stepped down in January, and in May, the company settled a proxy battle with its founder.
All that tumult affected the company’s performance. Last week, it reported a 9% sales decline in the last quarter.
Lululemon is not the only athleisure or sportswear brand having a tough 2026, said David Swartz, a senior equity analyst at Morningstar who covers the apparel industry.
“A number of companies in the industry, including Nike, Puma, and Under Armor, have really been struggling,” he said.
It’s a pretty big change from just a few years ago, during the pandemic, when sweatpants, leggings, and running shoes were flying off the shelves.
“A lot of people just really stocked up on sportswear during that period five years ago, and they don’t need any more right now,” Swartz said.
While some big name brands are struggling, the overall market for athleisure is doing OK. Swartz estimates it’sgrowing around 3% to 5% a year.
What’s changed is a lot of new,smaller brands have gotten into the segment, said Jessica Ramirez, co-founder of the consulting firm the Consumer Collective.
“There’s so many brands that collectively, even though they might be small, they dent the market,” she said, which makes it a bit tougher for older brands to keep growing.
Still, Ramierez said there’s opportunity for all athleisure and sportswear companies. Because as consumers get more active, they’re essentially buying two wardrobes: one for work, and one for exercise.
“You know, I’m not going to be running in my heels, and I’m not going to be running in my ballet flats. I’m going to need proper training shoes for that,” she said.
Some brands appear to be trying to cater to both those needs. The athleisure company Fabletics, for example, launched a denim line earlier this year.
