Is Activewear Slowing Down in 2026? What Lululemon’s Latest Results Mean for Retailers

For years, Lululemon was one of the easiest examples to point to when talking about the growth of activewear.

Leggings became everyday clothing. Sports bras became tops. Yoga pants moved far beyond yoga studios. And somewhere along the way, “athleisure” stopped feeling like a trend and became a permanent part of the American wardrobe.

That’s why Lululemon’s latest numbers caught so much attention.

In its second quarter of fiscal 2026, Lululemon reported a 4% decline in total revenue. Revenue in the Americas fell 8%, while comparable sales in the region dropped 12%. The company also lowered its full-year outlook and now expects annual revenue to decline between 5% and 7%.

Even more noticeable: sales of its signature leggings reportedly fell about 20% during the quarter.

So does this mean Americans are finally done buying activewear?

Probably not.

But it does suggest that the market is changing — and for smaller retailers, boutiques and activewear brands, that may be more important than whether one large company had a bad quarter.

The Problem Isn't Activewear. It's Sameness.

Walk through an activewear section today and you’ll see the problem pretty quickly.

Black leggings.

Another pair of black leggings.

A slightly different black legging with a different waistband.

Then the same sports bra in six colors.

There is nothing wrong with basics. They still sell, and they probably always will. But basics are no longer enough to make a customer stop scrolling.

Lululemon itself has acknowledged this issue before, saying parts of its casual assortment had become too predictable. The company has been working to increase the amount of newness in its product mix.

That matters because shoppers now have far more choices than they did five or ten years ago.

A customer looking for leggings can buy from a major athletic brand, an Amazon seller, a TikTok brand, a local boutique or one of dozens of newer direct-to-consumer labels.

The product has to give her a reason to choose one over another.

Sometimes that reason is fabric.

Sometimes it's fit.

Sometimes it's a flare leg, an interesting back detail, a better color or simply a silhouette she hasn't already seen everywhere.

Activewear isn't disappearing. Generic activewear is becoming harder to sell.

Retailers Don't Need More Products. They Need Better Bets.

This is probably the more useful lesson for an independent boutique.

When sales get harder, the natural reaction is often to add more.

More styles. More colors. More categories.

That can quickly create another problem: inventory.

A store carrying 30 styles doesn't necessarily have a stronger assortment than one carrying 10 good ones. It may just have more money sitting on shelves.

For a smaller retailer, the goal shouldn't be to predict every trend six months in advance.

It should be to make smaller, smarter bets.

For example, instead of buying heavily into ten new legging styles, a retailer might test:

• one classic high-waisted legging

• one flare or wide-leg shape

• one strong seasonal color

• one matching bra or top

• one lifestyle piece that can be worn outside the gym

Then watch what actually moves.

If one style starts selling, reorder it.

If it doesn't, move on without being stuck with hundreds of units.

That sounds obvious, but it's becoming increasingly important in a market where trends can move faster than traditional buying cycles.

Customers Are Wearing Activewear Differently Now

Another mistake is looking at activewear only through the lens of the gym.

A lot of the strongest products today don't look like traditional workout clothes.

Flare yoga pants are worn with hoodies and sneakers.

Tennis skirts are worn to brunch.

Sports bras are paired with oversized shirts.

Athletic dresses move between tennis, pickleball, travel and casual weekend wear.

That's a big shift.

A product doesn't necessarily need more technical features. Sometimes it simply needs more places where the customer can wear it.

That is part of the reason silhouettes matter so much right now.

A standard legging may still perform well, but a flare legging gives the customer something visually different.

A basic sports bra is useful, but an open-back or strappy design can work both as workout clothing and as part of an outfit.

A tennis dress doesn't have to be sold only to tennis players.

For retailers, thinking about wearing occasions instead of only product categories can make assortment planning much easier.

Trend Colors Matter — But Don't Bet the Whole Order on Them

Color is another area where smaller retailers can have an advantage.

Large brands need enormous volume. Small boutiques don't.

That makes it easier to experiment.

Black, navy and neutral colors remain dependable, but shoppers are also moving toward richer seasonal tones such as burgundy, coffee brown, muted blue and deeper greens.

The important part is not chasing every trending color.

It's controlling the risk.

If burgundy looks promising, test it.

You don't need to replace every black legging in the store with burgundy leggings.

The same rule applies to silhouettes.

A trend should earn more inventory through sales rather than receive a large inventory commitment simply because it is trending online.

Small-Batch Buying Is Starting to Make More Sense

This is also changing the relationship between retailers and wholesalers.

The old wholesale model often looked like this:

Choose the collection months in advance, place a large order, wait for production and hope your forecast was right.

That model works when demand is predictable.

It becomes much less comfortable when a TikTok trend can appear and disappear before the next production run arrives.

For smaller boutiques and online sellers, being able to test products with smaller quantities and reorder proven styles can be more valuable than getting the absolute lowest possible unit price.

A slightly cheaper product isn't really cheaper if half of it ends up in clearance.

That's something we see often at Ezee Wholesale.

Many of the boutiques and online sellers we work with aren't looking to place a huge order on an untested style. They want to see the fabric, check the fit and find out whether their customers actually respond to it first.

That's why we keep a growing selection of in-stock activewear, sports bras, yoga pants, tennis styles and everyday basics, while also offering private label and custom production for brands that are ready to scale.

The idea is simple:

Test first. Reorder what works. Customize once you know what your customer wants.

It's not the fastest way to build the biggest catalog.

It may be one of the safer ways to build a profitable one.

What Should Activewear Retailers Do Now?

Lululemon's slowdown shouldn't be read as a warning to get out of activewear.

If anything, it's a reminder that a strong category can still become crowded.

Consumers haven't suddenly stopped wearing leggings.

They've simply become harder to impress.

For independent retailers, that means the opportunity hasn't disappeared. But the buying strategy needs to change.

Carry fewer products you don't believe in.

Test new silhouettes before committing heavily.

Use seasonal colors without abandoning proven basics.

Look for products that work both inside and outside the gym.

And pay attention to what your own customers are buying instead of trying to copy every move made by the largest brands.

The next winning activewear product may not look dramatically different from what came before.

It may just have a better fit, a more wearable color, a small design detail or a price that makes a customer say:

“I'd actually wear that.”

In 2026, that may matter more than having another wall full of leggings.

Looking for activewear to test in your store?

Ezee Wholesale offers in-stock activewear, yoga pants, sports bras, tennis dresses and everyday basics for boutiques, online sellers and growing brands. Start with ready-to-ship styles, test what works with your customers, and move into private label or custom production when you're ready to scale.