MMM: 3Q24 Lululemon's Balancing Act Amidst Athletic Apparel Headwinds

Key Takeaways:

• Sensor Tower data reveals that Lululemon’s digital presence remains robust, with MAU and download growth outpacing many of its major competitors, growing ~36% YoY in 3Q24

  • Despite strong consumer adoption trends, time spent on Lululemon's app declined 4% YoY in 3Q24, indicating challenges in user engagement

• While Lululemon led the US luxury athletic apparel sub-sector¹ with a 41% MAU market share in FY 3Q24, its share through 2024 YTD is down 2ppts YoY as it faces heightened competition from newer entrants like Alo Yoga (+2ppts) and Gymshark (+4ppts), which are expanding rapidly with diverse and trendy product lines

  • In the global athletic apparel market, Lululemon, Fabletics, Athleta, and Alo Yoga MAU share remained flat on a YoY basis through 2024 YTD. Meanwhile, industry leader Nike (-5ppts) continued to cede share to its peers in the cohort² such as Adidas (+4ppts) and Gymshark (+1ppts) 

• In FY 3Q24, Lululemon's US advertising spend was 5x lower than the cohort average, underscoring the need for strategic customer acquisition investments to effectively compete with industry leaders

  • With 77% of its audience being female per ST’s Audience Insights data, there’s a substantial growth opportunity in the men's segment. Lululemon is addressing this by allocating 40% of its ad spend to male-centric and unisex campaigns, while targeting an additional 40% towards women's apparel under the "align tight" initiative, aiming to diversify its product line and capture a broader market share

For more information, request the full report from reports@sensortower.com.

_{1 US luxury athletic apparel sector includes Lululemon, Gymshark, Fabletics, Athleta, and Alo Yoga}

_{2 Cohort includes Nike, Adidas, Lululemon, Gymshark, Under Armour, Fabletics, Athleta, and Alo Yoga}