Vuori vs. Lululemon: The Next Big Name in Athleisure?

For over a decade, Canadian-based activewear company Lululemon has dominated the athleisure industry that it helped pioneer. However, the sector is now flooded with challengers, and competition is heating up. Vuori vs. Lululemon is becoming a key battle in this space, with Vuori recently raising $825 million in funding, increasing its valuation to $5.5 billion. This newcomer is rising to the challenge as Lululemon faces mistakes.

The firm does not think that Alo or Lululemon have to lose in order for it to win. Rather, it views the athleisure sector as an expanding arena with space for several competitors. Vuori is currently competing head-to-head with industry giants such as Athleta and Lululemon while poaching customers from both Nike and Lululemon. The brand, which operates as a private direct-to-consumer company, became profitable in under three years and, as of December 2024, has 79 stores in six countries, including the U.S. Vuori has continued to impress investors, raising over $1.2 billion in total funding.

Vuori’s Beginnings and Early Success

Based in Southern California, Vuori is a ten-year-old brand headed by CEO Joe Kudla, who was a model and accountant by background. Kudla conceived the idea of Vuori after becoming a yoga enthusiast and being let down by the men’s workout clothes that were on the market. They all had baggy silhouettes, oversized logos, and man-made materials, which neither Kudla nor his buddies liked. Vuori was born out of the need—a fashion-forward yet functional activewear brand.

During the pandemic, when convenience was the need of the hour, Vuori took advantage of the change in consumer behavior. From December 2019 to December 2020, the brand increased sales and customers by almost 300%. In contrast to other firms that emphasized fast growth at all costs, Vuori emphasized profitability right from the beginning and pursued a slow and steady approach to growth.

In 2021, SoftBank venture capital invested $400 million, giving Vuori a valuation of ten times its revenue. The investment was significant, as few brands had ever reached such valuations. 2021 was a record year for equity markets and IPOs, with valuations at a record high. But by 2024, investor sentiment had shifted, with consumer spending slowing and possible tariffs from an incoming president adding uncertainty. In spite of these issues, Vuori raised $825 million in private equity in November 2024, becoming one of the most valuable private apparel companies in history.

Vuori vs. Lululemon

Although Vuori has seen stunning growth, its revenue in 2023 was $320.8 million, far below Lululemon’s $9.6 billion. Although it slowed, Lululemon still makes huge sales. Its stock jumped 9% on December 5, 2024, after better-than-expected Q3 earnings, much of which is attributed to international sales.

Sportswear is the fastest-fashion-growing category, and competition is likely to escalate in 2025, says McKinsey. Challenger brands such as Vuori have increased revenue at a faster rate than legacy companies, enhancing profitability. Challenger brands will create over half of the industry’s profit in 2024, compared to 19% in 2020.

Vuori is poised for an IPO and has been making strategic executive hires with public company backgrounds. But unlike most private brands, it does not need money desperately and can wait until the time is right to become a public company. The firm’s last investment was designed as a secondary tender offer, where existing investors could offer shares to new investors, making a fat payday like an IPO. If Vuori goes public, it will be the sole direct competitor of Lululemon to do so.

Vuori Marketing Strategy

Vuori started off selling men’s activewear, a category that was significantly controlled by women’s items. The brand’s first hit item was a pair of men’s shorts, which are still a mainstay. Success in menswear enabled the company to initiate pilot programs with wholesalers such as REI and Nordstrom. Being carried in such locations assists with brand awareness, so consumers are more inclined to buy from Vuori directly in the future.

The company has been proactive with its marketing efforts, an early adopter of social media ads, and securing endorsements with college and professional athletes. Vuori now sells in higher-end retailers and is aggressively poaching Lululemon customers. It aims to win consumers who live active lifestyles, balancing performance and style.

Vuori has emphasized its store experience, product quality, and differentiation as key selling points. The company has built a loyal customer base, with many consumers praising its products despite the brand rarely offering discounts or sales. Reviews highlight the comfort and durability of Vuori’s activewear, further driving customer loyalty.

Vuori’s Expansion Strategy

Vuori’s expansion strategy has been calculated and deliberate. It has opened stores near Lululemon locations, adding 20 U.S. stores in 2024 and growing its international presence. New stores have launched in London, Shanghai, and Seoul, with a goal of 100 stores by 2026. Lululemon, with over 700 locations, and Alo, with more than 100 stores, remain strong competitors. However, Vuori’s faster pace of growth positions it as a serious contender in the athleisure space.

Although successful, Vuori has a number of challenges. Among them is the issue of product quality. Consumers are concerned that as the business grows, its fabric quality could suffer. If Vuori lets quality slide to maintain growth, it will lose customer confidence.

Another key challenge is product innovation. In a market where many brands offer similar activewear, differentiation is critical. Lululemon has announced plans to double its men’s business by 2026, increasing competition. Success in retail often depends on having innovative and high-quality products. The ability to stand out through unique fabric technology, fit, and quality will determine Vuori’s long-term position in the market.

Vuori vs. Lululemon: The Future Outlook

Brand recognition remains another hurdle. Vuori’s brand awareness is still relatively low, even compared to competitors like Alo. However, the company’s customer retention rate is high, with many buyers returning for repeat purchases—a strong indicator of brand loyalty and product satisfaction.

Though Vuori has not yet reached Lululemon’s height, its consistent growth and strategy have made it a serious threat. The growth of the company from a modest men’s online brand to an international athleisure giant showcases its solid vision and execution. Where Vuori struggled to get investors to come aboard in the early days, now it has to turn people away, having shown its potential over the long haul in the athleisure game.