Lululemon Is Out. These 3 Apparel Stocks Are in. VIEW IN BROWSER BY ANDY SWAN, FOUNDER, LIKEFOLIO Lululemon’s (LULU) selloff seems overdone. The stock has crashed nearly 50% in 2025. What does LikeFolio data say? We love any excuse to dig into LikeFolio’s consumer database for a little investigatory work. So when this question hit our inbox this week, we couldn’t pass up the opportunity. After all, Lululemon is exactly the kind of consumer-facing, buzzed-about brand our data was designed to track. And with shares facing a steep 50% drop this year, the stock price looks tempting. When we pulled the data, we were expecting to find a potential rebound signal. Instead, we found evidence that LULU hasn’t reached its consumer bottom yet… and discovered three red-hot competitors doing it better. | Recommended Link | | | | The time to start selling large tech stocks may finally be upon us. On September 16th, experts are saying there is a 95% probability that an adverse event will hit megacap tech stocks. Futurist Eric Fry’s most renowned skill is picking which stocks to sell and what to buy during stock market “regime changes” just like this. Now, Eric is saying “Sell NVDA, AMZN and TSLA before it’s too late.” Get the names and tickers of the alternative stocks he suggests instead… |  | | This LULU Data Surprised Us On the surface, LULU has the makings of a contrarian buy: - A historically high-quality brand…
- A stock that’s off 50% year to date and trading near five-year lows…
- And a premium price point that’s weathered plenty of cycles before.
But the consumer side tells a different story: - Main Street interest is shifting away from athleisure and toward denim.
- The most viral apparel campaign right now isn’t leggings – it’s Sydney Sweeney’s Good Jeans for American Eagle Outfitters (AEO).
- Consumers are flagging LULU for lower-than-expected quality, lack of innovation, and in some cases, store-related negatives like thefts or bizarre incidents (like twerking parties in stores).
- Premium customers are leaning into more fashion-forward activewear brands like Outdoor Voices, Alo Yoga, Beyond Yoga, and Rhone – all viewed as “cooler” than LULU in current influencer and fashion circles.
Even ChatGPT, when prompted on trendiness, echoed the shift: “If you want trendiest right now in the ‘seen on influencers and fashion TikTok’ sense, Outdoor Voices, Alo Yoga, Beyond Yoga, and Vuori have more heat. If you want something premium and still respected in activewear, Lulu hasn’t fallen off – it’s just no longer the default cool pick.” LikeFolio data all but solidifies LULU’s fall from leggings royalty, placing it near the bottom of the pack against those up-and-coming competitors: 
In fact, LULU web visit trends have been moving almost in lockstep with the stock’s fall… No divergence yet to suggest a consumer-led rebound: 
The stock looks cheap on valuation and history. But consumer momentum hasn’t turned. Buying it here would be a bet on a reversal that we simply don’t see in the data yet. Instead of trying to catch this falling knife, we’re focusing on three brands in the same general space that do have consumer momentum right now – and in some cases, the cultural spotlight. Take a look. Three Hotter Stocks to Watch Right Now No. 1: Levi Strauss (LEVI) Levi is taking advantage of shifting apparel demand tailwinds… and quietly capitalizing on LULU’s demise. 
The iconic denim brand acquired Beyond Yoga in 2021, positioning LEVI as a direct competitor to Lululemon. Beyond Yoga has opened more high-performing direct-to-consumer (DTC) doors for LEVI – and demand is booming. Beyond Yoga brand visits are rocketing nearly +52% year over year as the premium activewear brand gains market share among LULU’s cohort. At the same time, classic denim’s recent comeback is helping boost LEVI’s namesake brand, where digital demand is up +17% year over year. Looking ahead, management sees double-digit growth in women’s denim and the loose/baggy trend driving both men’s and women’s segments. “The brand has never been stronger, and that’s being fueled by relevant product… we’re investing to stay at the center of culture, from Beyoncé to NIKE collaborations, because you are the company you keep.” – Levi CEO Michelle Gass, July 2025 Earnings Call Last quarter, women’s apparel sales soared 14%, driven by outsized performance in Levi’s expanding tops selection. Translation: Levi’s is evolving into a full head-to-toe brand. Management has reset the category with shorter go-to-market cycles and more fashion-forward assortments, and it’s paying off. No. 2: American Eagle Outfitters (AEO) AEO has been in turnaround mode, and early signs indicate its aggressive marketing and product reset could be hitting the mark – especially in denim. Sydney Sweeney’s “Good Jeans” campaign stirred controversy… but tapped into a core denim niche that’s giving the brand a much-needed turnaround catalyst. The ads are driving significant traffic for AEO, with web visits this month approaching holiday shopping levels after a sharp spike: 
AEO’s activewear line, OFFLINE by Aerie, is proving to be a growth engine, too. The sub-brand is gaining market share and awareness with a cohesive product mix that balances basics like tank tops and t-shirts with more trendy pieces. (Bubble skorts, anyone?) It claimed the No. 2 spot among leggings brands in the first quarter of 2025, chipping away at LULU’s specialty. And it’s easy to see why: Compared to Lululemon’s pricey leggings, which can run north of $100 a pop, OFFLINE’s $40 price range is much more approachable for the everyday consumer. After a tough first quarter plagued by product misses and an inventory write-down, the AEO team has reset buys, tightened assortments, and prioritized clean inventories for the “retail Super Bowl” back-to-school season. “We want to be clean and mean for back to school. It’s our Super Bowl season, and that’s what we’re working on… Offline has been great. We had solid strength and growth there, and we’re leaning into that category.” – AEO President Jennifer Foyle, May 2025 Earnings Call No. 3: On Holding (ONON) LikeFolio followers know this name well. Swiss running shoemaker On Holding delivered our members a +136% profit between 2023 and 2024. And just this week, Earnings Season Pass subscribers played ONON earnings to the upside for a +100% gain in one trading day: “Got in on the ONON spread about 15 minutes before market closed on Monday and closed the position five minutes after the market opened for a 100% gain.” – Matt G., Earnings Season Pass subscriber And by the way, that double-your-money win wasn’t an anomaly. Earnings Season Pass subscribers see dozens of these opportunities each quarter. Sebastian S. grabbed +76% on ONON, +173% on Celsius Holdings (CELH), +146% on Insulet (PODD), and +325% on Shopify (SHOP) – all in the last week, all in two days or less. (If quick-hit trades are your style, I encourage you to learn more about Earnings Season Pass here – and jump in on the next round of trades that go out tonight at 7:00 p.m.) When it comes to ONON, the reason for our conviction is simple: Its data and fundamentals are both surging. 
The luxury running shoe brand saw net sales grow 38% year over year on a constant currency basis (cc) in the second quarter, while gross profit margin expanded to 61.5% and adjusted EBITDA reached 18.2%. ONON raised its full-year outlook across sales and margins despite higher tariffs. DTC sales soared 54% (cc), lifting ONON’s DTC mix to 41% of revenue – a new record. And apparel sales surged 75% (cc), proving ONON is successfully expanding from footwear to a toe-to-head sportswear brand. On’s nine footwear franchises each contribute 5% or more to revenue. Standout launches like the Cloudsurfer 2 and Cloud 6 shoes are gaining significant traction with consumers. In addition, collaborations with LOEWE, Zendaya, and FKA twigs widen On’s appeal with younger audiences – and reinforce premium positioning. “We are the only brand growing our connection with both performance and lifestyle simultaneously – a rare position that speaks to the strength and versatility of the brand.” – On Holding Co-CEO Martin Hoffmann, August 2025 Earnings Call The combination of accelerating demand, category expansion, and a leadership team confident in its pricing power make ONON one of the most compelling footwear setups we’ve tracked this season. The Bottom Line So forget LULU (if you haven’t already). The stock price might be tempting, but consumer momentum hasn’t turned. And in this market, that’s a dangerous setup. LEVI, AEO, and ONON are showing the kind of positive consumer and cultural trends that can fuel both near-term stock moves and longer-term growth stories: - LEVI is capitalizing on the denim revival and monetizing Beyond Yoga’s growth.
- AEO is leveraging a viral campaign and winning brands like OFFLINE to rebuild momentum.
- ONON is executing a premium, multi-category expansion with accelerating brand heat.
That’s where we’re putting our attention – and our bullish bets – right now. Until next time, 
Andy Swan
Founder, LikeFolio | 
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