Nike is far larger by revenue, but lululemon reported faster growth and substantially higher margins in the latest completed fiscal years available. Those years ended at different times, and tariff refunds boosted both companies’ more recent reported margins. At the October 2, 2026 market close, lululemon also had lower reported trailing and forward P/E ratios—but that snapshot is not proof that its shares are undervalued.
How do Nike and lululemon compare on the latest full-year results?
The comparison below uses each company’s latest completed fiscal year in the available results. Nike’s fiscal year ended May 31, 2026; lululemon’s ended February 1, 2026, so these figures do not cover the same months.
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| Measure | Nike | lululemon |
|---|---|---|
| Fiscal year ended | May 31, 2026 | February 1, 2026 |
| Revenue and annual change | $46.398 billion; flat year over year | $11.103 billion; up 5% (up 7% excluding the 53rd week in FY2024) |
| Gross margin | 42.9% | 56.6% |
| Operating profitability | EBIT margin: 8.3% | Operating margin: 19.9% |
Nike’s revenue was more than four times lululemon’s, reflecting a much larger business. The growth and margin figures point in a different direction: lululemon’s latest reported annual revenue grew while Nike’s was flat, and lululemon reported higher gross and operating margins. The margin labels are not identical—Nike reports EBIT margin, while lululemon reports operating margin—so treat them as broadly comparable measures, not as perfectly standardized ratios.
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What do the latest quarter updates say about momentum?
The latest located quarterly figures also cover different fiscal periods and are not equally sourced. lululemon reported Q2 FY2026 net revenue down 4% to $2.4 billion and comparable sales down 9%; Americas comparable sales fell 12%. Its FY2025 annual growth had been led by international revenue, which rose 22%, while Americas revenue declined 1%.
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A Yahoo Finance company page dated October 2, 2026 reported Nike Q1 FY2027 revenue of $11.21 billion, down 4%. That is a secondary summary rather than an official company release, so it should be treated with that source limitation. The available official Nike FY2026 release separately described continued top-line headwinds and said Q4 NIKE Direct revenue fell 7%.
Why do tariff refunds matter when comparing margins?
The annual margin figures above are company-reported results, but later quarterly figures show how much tariff-related accounting can affect a headline margin. A refund or recovery benefit raises reported results in the period recognized; it does not by itself show that the underlying product economics or demand have improved.
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- Nike: Its FY2026 filing recognized a $986 million expected IEEPA tariff recovery benefit in cost of sales. The company said most of the receivable was subsequently received after May 31, 2026. Nike’s Q4 gross margin was 49.2%, including an approximately 900-basis-point benefit attributed to the expected recovery. The reported FY2026 EBIT margin was 8.3%, versus 8.2% in FY2025; net income margin was 6.7%, down from 7.0%.
- lululemon: Q2 FY2026 gross margin was 60.5% and operating margin was 18.8%, each including a 560-basis-point tariff-refund benefit. Operating income decreased 13% to $453.7 million. Diluted EPS was $2.92, compared with $3.10, and included $0.86 tied to the tariff refund and interest, net of tax.
These quarterly benefits should not be substituted for recurring profitability. For a cleaner view of performance, compare margins over time and look for results that persist as tariff effects roll off.
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Which company has the lower valuation multiple?
At the October 2, 2026 close, StockAnalysis reported the following P/E ratios. These are provider-calculated market-data figures, not company-published metrics.
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| Valuation measure | Nike | lululemon |
|---|---|---|
| Trailing P/E | 16.22 | 7.73 |
| Forward P/E | 24.42 | 11.33 |
On that date, lululemon’s reported multiples were lower. A trailing P/E uses past earnings; a forward P/E depends on forecast earnings. Both can move with share prices and earnings estimates, and a depressed earnings base can make the ratios change sharply. A lower multiple alone does not establish that a stock is cheap or that the market is mispricing it.
What should investors watch next?
The key question is whether each company can turn its stated priorities into sustained operating improvement. Nike’s FY2026 results describe efforts to strengthen its business and reposition it for long-term growth, alongside weak direct-channel results: NIKE Direct revenue was $17.7 billion, down 6% reported and 8% currency neutral, while digital sales declined 12%. lululemon’s Q2 filing describes an action plan focused on product creation, activation, and enterprise enablement; management has identified improving full-price sales, particularly in North America, as a priority.
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- Look for demand to stabilize and revenue to recover without relying on one-off accounting benefits.
- Track full-price selling and discounting alongside reported sales, since revenue growth alone does not show whether products are selling at healthy prices.
- Watch whether gross and operating margins hold up as tariff effects normalize.
- For lululemon, monitor whether North American comparable sales improve and international growth continues.
- For Nike, watch direct and digital sales and whether the company’s broader growth repositioning is reflected in results.
Which looks stronger?
The available figures favor lululemon on reported annual growth, margins, and the October 2, 2026 P/E snapshot; Nike leads decisively in scale. That is not a complete investment verdict: the fiscal years are misaligned, tariff recoveries distort recent margins, the latest quarterly evidence is mixed, and the valuation ratios depend on changing prices and earnings. The comparison is most useful as a starting point for assessing execution and normalized earnings, not as a personalized buy-or-sell recommendation.
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