Lululemon Stock Jumps On NFL Partnership But Jefferies Calls The Move ‘Questionable’

• The NFL said that beginning October 28, customers can buy the new collection from the NFL shop and Fanatics websites as well as team retail locations, including online and at stadium retail stores.
• The collection will feature iconic Lululemon pieces across men’s and women’s apparel and accessories, all of which include signature team marks. 
• Jefferies said that Lululemon's decision to partner with Fanatics to sell NFL apparel is a "questionable move" that signals deeper strategic confusion.

Lululemon Athletica (LULU) stock became one of the top-trending tickers on Stocktwits after the shares rose nearly 3% on Monday following the announcement of a partnership with the National Football League (NFL) and the launch of an elevated apparel collection for all 32 NFL teams.

The NFL said that it was the first time the retailer has offered officially licensed products for the NFL or any of its teams. The collection will feature iconic Lululemon pieces across men’s and women’s apparel and accessories, all of which include signature team marks. 

Retail sentiment on Lululemon jumped to ‘bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘high levels, according to data from Stocktwits.

What Does The Partnership Entail?

The NFL said that beginning October 28, customers can buy the new collection from the NFL shop and Fanatics websites as well as team retail locations, including online and at stadium retail stores.

The assortment features core Lululemon products from its Steady State men’s franchise, as well as women’s styles from Define, Scuba, and Align, among others.

Jefferies Calls The NFL Partnership 'Questionable'

Lululemon's decision to partner with Fanatics to sell NFL apparel is a "questionable move" that signals deeper strategic confusion, Jefferies said on Monday.

The firm has an ‘Underperform’ rating on Lululemon and $120 price target on the shares, according to TheFly. Jefferies noted that the partnership highlights Lululemon's pattern of pursuing non-core growth at the expense of brand clarity, risking further erosion of its premium positioning.

In early September, Lululemon’s management acknowledged product missteps and a struggling U.S. business. The company is also seeing a potential deceleration in the China business.

Shares of Lululemon have lost nearly 53% of their value this year and 41% over the last 12 months.

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