Â© Reuters. Lululemon Athletica vs. Adidas: Which Sportswear Stock is a Better Buy?
Athleisure businesses have seen strong demand and sales since the pandemic, with consumers paying more attention to their fitness and health. Major athleisure retailers lululemon Athletica (LULU) and Adidas (OTC 🙂 are expected to generate strong returns in the coming months. But which of these titles is the best buy now? Read on to find out. Adidas AG (DE 🙂 (ADDYY) and lululemon Athletica Inc. (LULU) are two major players in the sportswear industry. Based in Germany, ADDYY designs, produces and markets footwear, clothing, accessories and equipment, as well as golf products under the Adidas and Reebok brands. It sells through company-owned retail stores, single-brand franchise stores, wholesale distribution and e-commerce channels. On the other hand, LULU designs, manufactures and distributes sports clothing and accessories for men and women. It sells its products through its lululemon and Ivivva branded stores, outlets and warehouses, yoga studios, health clubs, fitness centers, mobile apps and e-commerce website lululemon.com.
Social distancing restrictions and blocks have prompted consumers to focus more on their health and fitness and do home workouts over the past year, leading to demand for sportswear, footwear and related accessories. E-commerce sales have helped these businesses stay afloat during the pandemic. Additionally, rising vaccination rates have seen people join gyms, yoga centers, play sports and other outdoor activities. This continued demand has prompted sports recreation companies to manufacture flexible and comfortable clothing, introduce new trends in tune with changing consumer trends, and expand their reach in the market. The global sports entertainment market is expected to grow at a CAGR of 8.6% and reach $ 549.41 billion by 2028. Thus, ADDYY and LULU are expected to benefit.
While ADDYY has lost 18.7% in the past three months, LULU has jumped 9.1%. LULU is a clear winner with gains of 44.4% over ADDYY’s negative returns in terms of performance in their last nine months. But which of these titles is the best choice now? Let us know.
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