Lululemon Is Doubling Down on International Growth
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By Timothy Green – Dec 18, 2025 at 2:10PM ESTKey PointsLululemon is not waiting for a new CEO to enter new international markets.The company's international segment is booming, even as U.S. sales struggle.An activist investor has reportedly acquired a significant stake, which could impact the CEO search.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: LULULululemon Athletica Inc.Market Cap$24BToday's Changeangle-down(4.13%) $8.58Current Price$216.45Price as of December 18, 2025 at 2:41 PM ETThe apparel retailer is accelerating its overseas push.Fresh off the news that Lululemon (LULU +4.13%) CEO Calvin McDonald would step down in January, the apparel retailer isn't waiting for new leadership to lean into the part of its strategy that's working. On Thursday, Lululemon announced plans to enter six new international markets in 2026, an annual record for the company. Greece, Austria, Poland, Hungary, Romania, and India will be added to the list of more than 30 markets where Lululemon has a presence. The company will use a franchise partnership model in these markets, teaming up with Arion Retail Group in Europe and Tata CLiQ in India. Consumers in the expansion countries will also be able to shop for Lululemon's products online. Image source: Getty Images. International growth has been a bright spot Lululemon has been stumbling in the Americas over the past two years. Competition has been eroding the company's market share, as Lululemon has failed to innovate quickly enough to keep pace. Comparable sales in the Americas dropped by 5% in the third quarter. To be fair, Lululemon's issues aren't entirely of its own making. U.S. tariffs are also playing a role, with the end of the de minimus exemption wrecking the company's online fulfillment model. Lululemon had been shipping U.S.-bound online orders through Canada, a strategy that no longer delivers the cost benefits it once did. While Lululemon's sales in its core market have been weak, the company's international business has been a different story. International revenue soared 33% in the third quarter, with comparable sales jumping by 18%. China played an outsize role in producing those impressive figures, but even excluding China, comparable sales in the rest of the world rose by 9% in the third quarter. Lululemon's products are seeing strong demand outside of the U.S.Advertisement Lululemon's next CEO will need to address the company's problems in the Americas, but they will inherit a thriving international business with ample room for further expansion. Using a franchise model has the benefit of reducing the initial costs required to build a presence in new markets and accelerating the process. It will take time for the U.S. business to be turned around, so keeping up the international growth rate is critical. ExpandNASDAQ: LULULululemon Athletica Inc.Today's Change(4.13%) $8.58Current Price$216.45Key Data PointsMarket Cap$24BDay's Range$215.88 - $225.8552wk Range$159.25 - $423.32Volume565KAvg Vol4.4MGross Margin58.35% An activist investor enters the mix On the same day Lululemon announced its international expansion plans, The Wall Street Journal reported that activist investor Elliot Investment Management had built a stake valued at more than $1 billion in the company. Elliot is reportedly pushing for Jane Nielsen, former CFO and COO at Ralph Lauren, to be named the new CEO. Lululemon certainly needs a refreshed strategy in the U.S. The company has already shifted course to a degree, ramping up new product development and working to reduce product development times. At the very least, management now recognizes that change is necessary as competition in the activewear business intensifies. However, the company was slow to act, and it could likely benefit from being more aggressive as it seeks to win back lost customers. Regardless of how the CEO search process plays out, Lululemon's international efforts are paying off. With an activist investor now involved, the company may move faster to right the ship in the Americas. That's good news for investors, who have suffered a steep drop in the stock price since the start of 2024. Far from a lost cause, with the right strategy and the right leadership, Lululemon can once again deliver solid returns for investors.About the AuthorTim Green is a contributing Motley Fool technology and consumer goods analyst covering companies in AI, cloud computing, retail, and other market sectors.
Before The Motley Fool, Tim was in a doctoral program for computational physics. He holds a bachelor’s degree in physics from Rochester Institute of Technology.TMFBargainBinRead NextDec 18, 2025 •By Rich SmithWhy Lululemon Stock Popped TodayDec 17, 2025 •By Parkev Tatevosian, CFAIs Lululemon Stock Still an Undervalued Stock?Dec 15, 2025 •By Geoffrey SeilerIs Lululemon Back? What's Driving the Stock's Strong Gains This Month?Dec 13, 2025 •By Timothy GreenLululemon Stock Is a Buy After CEO ExitDec 12, 2025 •By Daniel SparksAfter Getting Crushed Earlier This Year, Lululemon Stock Is Soaring. Time to Buy?Dec 12, 2025 •By Rich SmithWhy Lululemon Stock Popped Today